Obama Administration international tax proposal
Focus on financial services organizations
Download Obama Administration international tax proposal
On May 11, the US Treasury Department issued its “Green Book,” which provides general explanations of the Obama Administration’s revenue proposals. While certain proposals affect primarily US multinationals, others potentially touch foreign-based multinationals and their US subsidiaries. If enacted, certain information reporting proposals can be expected to impose substantial administrative burdens on US- and foreign-based financial institutions.
Despite the delayed effective dates of many proposals, financial services organizations should start to carefully review the potential financial and tax impacts of these proposals and begin to evaluate changes that may mitigate adverse consequences. Furthermore, with respect to potential changes to the US withholding tax regime, it may be necessary to consider upgrading tax compliance and reporting systems and procedures. This paper outlines the potential impact of the Administration's proposed changes on the financial services industry.