| This week's tax news from the Americas - US Supreme Court overrules Chevron deference to agency regulations
In Loper Bright Enterprises v. Raimondo, No.22-451 (28 June 2024), a majority of the US Supreme Court (Court) overturned the 40-year precedent in Chevron U.S.A. Inc v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), which had been a mainstay precedent instructing courts to defer to the decisions of federal agencies when a statute is ambiguous. In place of the so-called Chevron deference, the majority opinion in Loper Bright held that courts must exercise their independent judgment when interpreting statutory language.
- US Treasury and IRS issue final IRC Section 367(b) regulations addressing certain cross-border triangular reorganizations and inbound nonrecognition transactions
The United States (US) Department of Treasury and the Internal Revenue Service (IRS) released final regulations 17 July (TD 10004; Final Regulations) under US Internal Revenue Code (IRC) Section 367(b) on the treatment of property used to acquire parent stock or securities in connection with certain cross-border triangular reorganizations and inbound nonrecognition transactions. Consistent with the proposed regulations, the Final Regulations modify certain aspects of the existing regulations under IRC Section 367(b) (Existing Regulations) to incorporate, with certain modifications, guidance described in Notice 2014-32 and Notice 2016-73, each issued in response to transactions perceived as exploiting certain aspects of the Existing Regulations.
- Argentina implements the Regularization Regime for Tax, Customs and Social Security obligations
Through General Resolution No. 5,525, published in the Official Gazette on 16 July 2024, the Argentine Federal Tax Administration implemented the Exceptional Regularization Regime of Tax, Customs and Social Security Obligations, enacted as part of Title I of Law No.27,743 (i.e., the tax package). The regime applies to taxpayers with tax, customs and social security obligations due through 31 March 2024.
- Canada Revenue Agency changes position on applying withholding tax to subcontractor fees
In a recent external technical interpretation, the Canada Revenue Agency (CRA) announced that withholding tax applies to fees paid by a Canadian resident corporation to a nonresident corporation as a reimbursement of subcontractor fees for services performed in Canada. The CRA's new position, which reverses its previous position published in 2008, applies to reimbursements of subcontractor fees made after 30 September 2024.
- Canada Border Services Agency updates trade-compliance-verification list
The Canada Border Services Agency (CBSA) published its semi-annual update of its list of trade-compliance-verification priorities in July 2024. The list is designed to update the importing community on ongoing verification priorities and set the stage for new priorities for the upcoming calendar year. The CBSA continues to focus on tariff classification as a priority audit area, introducing one new product category (Gloves) to the list of tariff-classification priorities. In this update, the CBSA also identifies new compliance priorities.
- OECD releases sixth edition of Corporate Tax Statistics publication
On 11 July 2024, the OECD released the sixth edition of its annual publication on Corporate Tax Statistics (the Corporate Tax Statistics Report), along with an updated Corporate Tax Statistics Database. The Report provides an overview of corporate tax data across 160 countries and jurisdictions, covering statutory and effective tax rates, withholding taxes, tax treaties, corporate tax revenues, international activities of multinational enterprises and aggregated country-by-country reporting (CbCR) data. The Report is accompanied by an updated set of Frequently Asked Questions (FAQs) on the anonymized and aggregated CbCR data.
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| About Americas Tax Roundup Published by NTD's Tax Technical Knowledge Services Group, Washington, D.C. Jennifer Brittenham, writer and editor Distributed weekly to all Americas Tax personnel. | |