Document Type
Article
Publication Date
2023
Abstract
Critics of the UTPR (formerly known as the undertaxed payments rule) of the G-20/0ECD/ inclusive framework base erosion and profit shifting project's pillar 2 have focused on the potential impact of the top- up tax on U.S. environmental credits enacted in the Inflation Reduction Act(IRA, P.L.11 7-169) and on credits to encourage domestic chip manufacturing in the Creating Helpful Incentives to Produce Semiconductors and Science Act (the CHIPS Act, P .L. 117-167). They argue that Congress's ability to effectively implement its chosen policy goals is undermined because the UTPR - when applied to other parts of U.S. multinational enterprises - will eliminate the tax effect of the credits. This, the critics argue, is an unjustified interference with Congress's ability to tax U.S. corporations on U.S.-source income in any way it chooses.
Recommended Citation
Avi-Yonah, Reuven S. "The UTPR and the Credits." Tax Notes International 110 (2023): 1363.
Comments
Reprinted with the permission of Tax Analysts