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LIBOR Demise • Trump’s Tax Returns • California’s Business Tax

Nov. 30, 2019, 3:01 PM

This is a weekend roundup of Bloomberg Tax Insights, which are written by practitioners featuring expert analysis on current issues in tax practice and policy. The articles featured here represent just a handful of the many Insights published each week. For a full archive of articles, browse by jurisdiction at Daily Tax Report, Daily Tax Report: State, and Daily Tax Report: International.

This week we look at the end of LIBOR, Trump’s tax returns, the limits of the California “doing business” tax, what’s next with Brexit, and the EU’s DAC 6. We will hear from:

  • Sherif Assef, Yosef Lugashi, and Petia Petrova of KPMG LLP, and Jeff Nagle of Cadwalader, Wickersham & Taff LLP on the end of LIBOR
  • Alan B. Morrison of George Washington University Law School on the subpoenas for President Donald Trump’s tax returns
  • Robert Willens on the limits of the California “doing business” tax
  • James Ross of McDermott Will & Emery on whether the Brexit fog is about to lift
  • Theodora Mavromati and Andy Murray of Duff & Phelps on the implications of DAC 6 for the asset management and private equity industry
The Canary Wharf business district in London. Regulators, banks, and businesses are preparing for the end of London Interbank Offered Rate (LIBOR) .
Photographer: Chris Ratcliffe/Bloomberg

The London Interbank Offered Rate (LIBOR) is coming to an end with implications for tax, accounting, and transfer pricing. Sherif Assef, Yosef Lugashi, and Petia Petrova of KPMG LLP, and Jeff Nagle of Cadwalader, Wickersham & Taft LLP explain how taxpayers need to prepare. Read: The Demise of LIBOR—Tax and Transfer Pricing Implications—Part 1 and The Demise of LIBOR—Tax and Transfer Pricing Implications—Part 2

President Trump’s lawyers have asked the U.S. Supreme Court to quash two subpoenas for his tax returns. Alan B. Morrison of George Washington University Law School explains why both requests should be denied. Read: Supreme Court Should Stay Away From Trump Tax Return Cases

An out-of-state limited liability company with a small minority interest in another LLC doing business in California successfully challenged the state’s “doing business” tax. Robert Willens tells how the Office of Tax Appeals found that the minimum ownership threshold for the tax isn’t as minuscule as the state Franchise Tax Board argued. Read: Washington LLC Doesn’t Owe California ‘Doing Business’ Tax

With the U.K.’s departure from the EU having been postponed for a third time until Jan. 31, 2020, James Ross of McDermott Will & Emery considers whether the Brexit fog is now finally about to lift. Read: Brexit—What Now?

Theodora Mavromati and Andy Murray of Duff & Phelps question the necessity of the EU’s Directive on Administrative Cooperation (DAC 6) and its implications for the asset management and private equity industry. Read: DAC 6—Impact on the Asset Management Industry

From the Archive

Bloomberg Tax contributors have been adding their analysis to the Trump tax return debate since last summer.

Morrison initiated a discussion about privacy, saying that making the president’s tax returns public would belie one of the underlying principles of our income tax laws, and Americans have a stake in seeing their privacy is protected.

Lawrence Gibbs, a former IRS commissioner, recounted the events and concerns that led to the current language in the tax code section providing that protection. Gibbs, of Miller & Chevalier Chartered, helped draft that language and explained that it is as important now as when it was enacted.

George K. Yin of the University of Virginia School of Law and former chief of staff for the Joint Committee on Taxation argued that public disclosure concerns shouldn’t stop congressional efforts.

Beyond Tax

What’s happening outside the world of tax?

Raise your odds of filing a winning motion by first asking five key questions, writes Winston & Strawn’s Andrew C. Nichols. The last question, in particular, may surprise you. Read: Five Questions to Ask a Week Before Filing That Critical Motion

Exclusive Content for Bloomberg Tax Subscribers

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Canada may be moving closer to considering a unilateral digital tax. Patrick Marley, Taylor Cao, Kaitlin Gray, and Kaleigh Hawkins-Schulz of Osler, Hoskin & Harcourt LLP say a convergence of proposals from the major political parties suggest that Canada will adopt a unilateral digital services tax. However, it is still possible that Canada may instead agree to wait and follow the unified approach being considered by the G-20 and ultimately the more than 130 countries comprising the members of the Inclusive Framework on BEPS.

Bloomberg Tax Insights articles are written by experienced practitioners, academics, and policy experts discussing developments and current issues in taxation. To contribute please contact Erin McManus at emcmanus@bloombergtax.com.

To contact the reporter on this story: Erin McManus in Washington at emcmanus@bloombergtax.com