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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!


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    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?


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