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September 16, 2024
2024-1690

Americas Tax Roundup | 16 September 2024

 
 

A weekly summary of the top weekly tax news, trends
and developments in the Americas

 
 
      
 

     This week's tax news from the Americas

  • Salvadoran Congress approves tax amnesty program
    The Congress of El Salvador approved a tax amnesty program on 3 September 2024 that allows taxpayers to comply voluntarily with their outstanding tax, customs obligations, and traffic fines (i.e., fines under the Land Transport, Traffic, and Road Safety Law). The tax amnesty program only applies to penalties and interest, not the tax owed. Additionally, the amnesty program does not cover outstanding obligations for municipal taxes.
  • US Tax Court allows a domestic corporation to claim IRC Section 245A DRD for IRC Section 78 dividend on IRC Section 965 inclusion from fiscal-year CFCs but reduces FTC claim
    In Varian Medical Systems, Inc. v. Commissioner, 163 T.C. No 4 (August 26, 2024), the US Tax Court held that a non-calendar corporation (the taxpayer) may claim a dividends-received deduction (an IRC Section 245A DRD) for a portion of its mandatory repatriation tax inclusion under IRC Section 965 (i.e., the IRC Section 78 gross-up relating to that inclusion). Specifically, the Court found that a plain reading of the statutory text mandated different effective dates for IRC Section 245A and amended IRC Section 78, which allowed an IRC Section 245A DRD to be claimed during the "gap" period. In reaching this conclusion, the Court did not follow Treas. Reg. Section 1.78-1, which was amended in 2019 to modify the effective date of IRC Section 78. The Court, however, also concluded that the taxpayer, under IRC Section 245A(d)(1), could not claim a foreign tax credit (FTC) for a portion of its deemed paid taxes to the extent attributable to the IRC Section 78 dividend.
  
 
 

     This week's newsletters

  
 
 

     Upcoming EY webcasts

A calendar of all upcoming EY webcasts is available.

  
 
 

     Recent EY podcasts

All episodes of the EY Cross-Border Taxation Spotlight and
EY Talks Tax are available through Apple podcasts.

  
 
 

      This week's EY Global Tax Alerts

     Asia

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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.

 
 
 
 

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