No force or effect of OECD Global Tax Deal in US: White House

The deal supported under the prior administration “not only allows extraterritorial jurisdiction over American income, but also limits our nation’s ability to enact tax policies that serve the interests of American businesses and workers,” the memorandum issued to the secretary of treasury, the US trade representative (USTR) and the US permanent representative at the OECD, said.

American companies may face retaliatory international tax regimes if the United States does not comply with foreign tax policy objectives because of this deal and other discriminatory foreign tax practices, it noted.

The treasury secretary in consultation with the USTR shall investigate whether any country is not in compliance with any tax treaty with the United States or has or is likely to put any tax rules in place that are extraterritorial or disproportionately affect American companies.

He will present within 60 days a list of options for protective measures or other actions that the United States should adopt or take in response to such non-compliance or tax rules, the memorandum added.

ALCHEMPro News Desk (DS)