TRENDING IN TAX
IRS proposes regulations for the switch from LIBOR
Guidance would facilitate transitions of existing debt and derivatives to alternative benchmark rates without creating taxable exchanges.
Replacing a key benchmark interest rate, the London Inter-Bank Offered Rate (LIBOR) is a stated goal of financial regulators. LIBOR rates are quoted for many different currencies, including U.S. dollars, and are referenced in lending and derivative transactions throughout the world. Trillions of dollars of transactions are based, in whole or in part, on U.S. dollar LIBOR.
EU’s VAT action plan ‘Quick Fixes’
More than $750bn VAT revenue has been lost across the EU over a 5-year period from VAT fraud and more significantly to noncompliance.
U.S. businesses with operations and transactions across the European Union (EU) are required to comply with EU VAT rules and regulations. U.S. businesses that, directly or through subsidiary operations, are involved in the movement of goods across EU borders will be impacted by these upcoming changes. Failure to comply can lead to penalty exposure and further scrutiny by the tax authority.
Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
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