Ernst & Young ITTS Washington Dispatch

Trump Administration, Congressional Republicans look for unified tax reform proposal – Trump Administration's FY2018 Budget offers few specifics on tax reform -- Trump Administration issues NAFTA renegotiation notice letters -- Changes made to IRS reporting under Sections 332, 351, 368 and 6038B by final regulations issued in 2016 affect filings for 2016 -- Treasury negotiating competent authority agreements to exchange CbC reports – US tax treaty negotiation update -- G7 Finance Ministers and Central Bank Governors communiqué references global tax system -- OECD releases implementation guidance on hard-to-value intangibles -- OECD releases peer review document on BEPS Action 6, Preventing the Granting of Treaty Benefits in Inappropriate Circumstances.

President Trump releases tax reform plan; calls for territorial system and repatriation of foreign earnings -- President Trump signs executive order requiring review of tax regulations – Modification of variable prepaid forward contracts does not trigger gain realization, Tax Court holds – IRS issues annual APA report for 2016; uptick in Indian APA cases – IRS extends deadline for submitting QI, WP, and WT agreement renewal requests to 31 May – OECD updates guidance on Country-by-Country Reporting.

Congress turns to tax reform after ACA repeal fails in House – Trump Administration issues FY 2018 'skinny budget' – US Tax Court upholds Amazon subsidiary's transfer pricing buy-in payment – IRS finalizes competent authority agreements for CbC reporting – IRS to resume issuing 'sub-regulatory' guidance – OECD official offers insights on upcoming profit split, PE profit attribution drafts – OECD, IMF deliver report addressing tax certainty.

President Trump delivers address to Congress; US tax reform remains priority – LB&I announces first international tax campaigns in new issued-based exams and compliance process – US officials offer insights on Section 901(m), Section 385 guidance – Japan's NTA confirms tax treatment of US LPs as fiscally transparent – IRS official confirms no major guidance in near term -- OECD begins peer reviews of BEPS Action 14 Dispute Resolution – OECD release peer review documents on BEPS Action 5 (Harmful Competition) and BEPS Action 13 (CbC Reporting) – OECD, UN, IMF, World Bank jointly release draft transfer pricing toolkit for developing countries.

Congress, incoming Trump Administration prepare for tax reform * Temporary and proposed regulations on covered asset acquisitions issued under Section 901(m) * Final and temporary US FX regulations issued * Final regulations retroactively eliminate Section 367(d)'s exception for foreign goodwill and going concern value * IRS releases extensive FATCA-related guidance * IRS issues final PFIC regulations * IRS finalizes regulations requiring reporting by foreign-owned US disregarded entities * IRS Notice 2016-73 announces amendments to Section 367 regulations applying to certain cross-border triangular reorganizations and inbound nonrecognition transactions * IRS issues Section 871(m) transition rules in Notice 2016-72 * IRS Notice 2017-07 modifies effective date for deferral events and outbound loss events * US, India reached agreement in first bilateral APA.

US Treasury and IRS issue final and temporary Section 385 debt/equity regulations – What taxpayers should do now that final Section 385 regulations are released – IRS officials say cross-border intangible guidance, Section 871(m) package coming soon – US taxpayers seeking unilateral APAs with Mexico for maquiladoras will not be subject to double taxation – US to exchange summaries of unilateral APAs in accordance with BEPS Action 5 – OECD holds consultation on BEPS profit attribution to PEs, revised guidance on profit splits – OECD released BEPS Action 14, "More Effective Dispute Resolution Mechanisms," peer review documents.

Congress returns for short pre-election session; tax reform pushed to 2017 – US government ups criticism of EU State aid investigations – Treasury Secretary again meets with House tax leaders over Proposed Section 385 debt/equity regulations – IRS announces plans for regulations on Section 909 foreign tax credit splitters – IRS officials offer insights into future international guidance – OECD reaches overall agreement on multilateral instrument – G-20 communique urges implementation of automatic exchange of information by 2018.

Congressional Republicans maintain opposition to Proposed Section 385 regulations -- IRS focusing on FATCA IGAs currently 'in effect' -- Obama Administration issues White Paper on EU State aid investigations – IRS final regulations issued on 2% tax on payments US government makes to foreign persons under certain contracts -- Treasury/IRS 2016-2017 Priority Guidance Plan contains several new international tax projects -- Lawsuit filed challenging anti-corporate inversion regulations -- OECD releases Discussion Draft on branch mismatch structures.

IRS and Treasury hold hearing on Proposed Section 385 debt/equity regulations – Senate Finance Committee Chairman's corporate integration draft delayed -- IRS releases proposed Qualified Intermediary Agreement – IRC Section 385 cases in exam or litigation require coordination with IRS Associate Chief Counsel offices – IRS official lists international guidance slated for release before Obama Administration ends.

US releases final country-by-country (CbC) reporting regulations – House W&M Republicans request comment period extension for Proposed Section 385 debt/equity regulations; Treasury remains firm – House tax reform blueprint details to be filled in; House Democrats take aim – OECD releases more guidance on CbC reporting.