Thursday, June 28, 2018
Reuven S. Avi-Yonah (Michigan), US Tax Reform: Potential Impact on Europe and EU Corporations (Presentation Slides):
Tax Cuts and Jobs Act (“TCJA”) signed into law by President Trump on 22 December 2017 contains multiple provisions that significantly impact Europe and the way European corporations are being taxed by the US. The US corporate tax rate is set to be 21% (reduced from 35%). Most importantly, the shift towards participation exemption and the adoption of the base erosion anti-abuse tax (“BEAT”), the global intangible low-taxed income (“GILTI”) and the foreign-derived intangible income (“FDII”) changed the delicate balance of US-EU taxation. Nonetheless, TCJA should not be considered as a ‘tax war’: it is a long-overdue response to the BEPS by US and a correct application of the single tax principle to prevent double non-taxation.
Mindy Herzfeld (Florida), US Tax Reform: Worth Waiting 30 Years For? (Presentation Slides):
These slides were prepared for lecture I presented in Stockholm on May 30, 2018, for IFA YIN meeting. The presentation considers the enactment of Pub.L. 115-97, informally known as the Tax Cuts & Jobs Act (TCJA), within the context of U.S. and global tax developments over the past 30 years. It highlights why, in important respects, the TCJA may be considered a repudiation of the fundamental principles on which the US international tax system was built in the early 20th century. Unfortunately, I fail to come up with an answer to the question posed: was the TCJA worth waiting 30 years for?