A looming deadline for the US federal debt ceiling, and the discussions that came out of last week’s G8 summit in Lough Erne, could prompt action on reforming the US tax code sooner than expected.
George Osborne, UK Chancellor of the Exchequer, said more progress has been made on countering tax secrecy and corporate tax evasion in the last 24 hours than in the previous 24 years. But conflicting messages could yet stall concrete agreements.
United States House Ways & Means Committee chairman Dave Camp will hold a hearing on Thursday to examine US and foreign multinationals’ use of tax havens to avoid tax and shift profits outside of the US.
The UK tax authority has published a consultation paper to seek stakeholder feedback on its proposals to modernise the taxation of corporate debt and derivative contracts. But the paper also features a proposal that could end companies’ ability to perform tax-free debt-for-equity swaps.
German state tax ministers are concerned about the country’s potential loss of competitive advantage because of new intellectual property tax incentives being offered by other EU member states such as the UK.
Industry organisations in the US have urged President Barack Obama to prioritise the international competitiveness of worldwide American companies by championing tax policies to that end at the G8 summit later this month.
