Skip to main content

The Latest in Tax News: February 2020 Edition

Tax news, tax stories, US tax news, US tax stories, international tax news, international tax stories, recent tax news, recent tax events, recent tax stories, tax update, current event in tax
Textbook Tax presents its monthly tax news update. A quick read discussing various tax news, tax stories, and tax events trending in the world of tax during the month. The following tax topics cover the month of February 2020. The tax topics presented represent my favorites in tax news and tax-related events. Please comment any tax news stories you found interesting for the month of February. Additionally, please email me or connect with me on social media for the monthly tax news update sent straight to you!

Related Posts -- Prior Weeks' Tax News
January 2020
December 2019

Tax News for February 2020

Tax Topic: India delays implementation of its technology company aimed tax

Tax Story Summary:

  • India announced its plan to tax technology companies that lack a physical presence in India.
  • The technology tax targets companies (without a physical presence in India) that earn income from adverting activities and data sales within the country. In addition, the companies must meet a revenue/users threshold to qualify. 
  • India announced that the expected technology tax will be implemented on April 1, 2022. The initial plan hoped to implement the tax a year earlier on April 1, 2021.
  • The extended time will allow large technology companies to assess the effects of the tax law and develop tax planning strategies. 

Tax Topic: The Alters Corporation tax case reaches the Supreme Court

Tax Story Summary:

  • Altera Corp., owned by Intel, plans to appeal its loss in the U.S. Court of Appeals to the U.S. Supreme Court.
  • The major tax case focuses on the tax treatment of stock-option compensation related to the valuation of assets for U.S. tax purposes of multinationals.
  • The IRS argues that Altera should include the stock-based compensation it paid its employees that engaged in R&D in the agreement with the Cayman Islands subsidiary in the total assets valued for U.S. tax purposes.
  • Altera argues that the it is a case of extreme administrative agency over-reaching. Additionally, it points out that the IRS failed to significant comments about the related transactions.
  • The landmark tax case is being watched by large U.S. tech companies like Google, Apple, and Facebook as the case focuses on the movement of assets overseas.

Tax Topic: European Union blacklists the Cayman Islands

Tax Story Summary:

  • The EU added the Cayman Islands to its list of blacklisted tax havens.
  • The Cayman Islands join Oman, Fiji, Vanuatu, Panama, Palau and the Seychelles.
  • The EU accuses the said places of failing to crack down on tax abuse. 
  • The Cayman Islands has no income tax, capital gains tax, or corporation tax, which creates a tax environment that encourages tax abuse.
  • Leaders from the Cayman Islands are in contact with the EU relating to the reversal of the blacklisted status.

That is all for the most recent tax news, tax stories, and tax events!

For any and all comments, please share below!

Comments

  1. I recently asked my 4 year old husband for a divorce https://onlinedivorcer.com/blog/how-to-divorce-a-narcissist-and-win. When we first got married, I always thought I would be as happy as when we were in the deep phase of our honeymoon.

    However, the normal ups and downs of early adulthood soon led to strife and problems in our marriage.

    I'm grateful my home hasn't turned into a poisonous wasteland for either of us, but I find it odd. Has anyone else ever experienced something similar?

    ReplyDelete

Post a Comment

Popular posts from this blog

Gambling Winnings & Losses: How to report gambling income and losses

People love to gamble.  During the past NFL Super Bowl (2019),  gamblers wagered approximately $146 million in Nevada’s sports books, which fell short of the record set the year before of $159 million. The gambling industry continues to grow as U.S. legislation becomes less restrictive relating to the gambling industry.  Because of the size of the gambling market, the IRS set forth guidance to control the tax treatment of gambling winnings and losses. I will discuss income and losses, record keeping, reporting forms, and special rules. If you participate in gambling activities, it is important to know the unique personal tax rules. The term 'gambling' applies to a wide range of activities, including: sports betting, casino games, lotteries, etc. You will need to follow the established gambling tax rules when reporting winnings and losses from gambling activities. Related Posts IRA Income: Must know tax rules relating to your IRA Are your income items taxable?...

Cryptocurrency Taxation: How does the U.S. tax cryptocurrency? - Textbook Tax

The cryptocurrency market continues to rise in popularity in the U.S. and throughout the world. The decentralized finance ("Defi") sector has seen massive growth. Additionally, ease of access has increased as new and established companies offer crypto services and exchanges. As more and more individuals and institutions adopt cryptocurrency, it becomes more important for people to understand the tax laws and regulations governing the cryptocurrency industry. It is important to note that each country views and regulates virtual currency differently.  The scope of this article covers the crypto tax laws in the United States.  T he IRS defines virtual currencies as  digital representations of value that function as mediums of exchange, units of account, and/or stores of value. Further, t he U.S. views crypto as property subject to capital gains and losses for US federal tax purposes. Based on its designation as property, i n general, there are four taxable events when d...

20 Tips & Tricks for Studying for the CPA Exam

For those on the way to becoming a certified public accountant, you now know it is a long and difficult journey. For those just beginning, good luck! The most difficult and time-consuming task is passing the CPA Exam. CPA candidates must spend hundreds of hours preparing for all four sections of the CPA. Each CPA section represents an entirely different topic, creating a daunting task for anyone looking to start studying for the CPA exam. I passed all four sections of the CPA with an average score of 91. Luckily, I did not have to retake any of the exams, which is a common occurrence as the average passing rate is around 40-50% per exam. Having personal experience dealing with the CPA exam process, I want to share valuable tips for conquering the CPA exam. I want you to feel confident and comfortable during the CPA exam process, and so, I believe the following tips will help you during the CPA exam process. Lets begin! Related Posts -  Preparing for the CPA Exam: How to St...