IRS Issues Guidance for Allowance of Credit for Increasing Research Activities: Today, the IRS issued guidance to Large Business & International (LB&I) Division examiners regarding examination of the credit for increasing research activities under section 41. The directive is intended to provide an efficient approach for determining the amount of qualified research expenses (QREs) for LB&I taxpayers while, at the same time, reducing the burden of doing so on LB&I taxpayers and examiners. The directive instructs LB&I examiners to accept the Adjusted Accounting Standards Codification (ASC) 730 Financial Statement R&D amount for the credit year as the amount of QREs for that year.
European Commission Re-Launches Common Consolidated Corporate Tax Base: The European Commission announced today it has decided to re-launch the common corporate tax base (CCTB) and the consolidated corporate tax base (CCCTB). The interconnected proposals provide for a determination of a single set of rules for calculation of the corporate tax base. Companies operating across borders in the EU would no longer have to deal with 28 different sets of national rules when calculating their taxable profits.