Document Type

Book Chapter

Publication Date

2019

Abstract

The Tax Cuts and Jobs Act (TRA17) signed into law by President Trump on 22 December 2017 contains multiple provisions that incorporate the principles of the OECD/G20 Base Erosion and Profit Shifting Action Plan (BEPS) into domestic US tax law. Together with the changes in the 2016 US Model Tax Treaty, 1 these provisions mean that the United States is following the European Union in implementing BEPS and particularly its underlying principle, the single tax principle (all income should be subject to tax once at the rate derived from the benefits principle, i.e., active income at a minimum source tax rate and passive at the residence state rate). This represents a triumph for the G20/OECD and is incongruent with the generally held view that the United States will never adopt BEPS

Comments

Reprinted from Combating Tax Avoidance in the EU: Harmonization and Cooperation in Direct Taxation, edited by José M. A. Cid, Jorge A. F. Gutiérrez, and Pablo A. H. González-Barreda, EUCOTAX Series on European Taxation, 61 (2019), 1-36, with permission of Kluwer Law International.


Share

COinS