In the aftermath of the passage of US Tax Reform and in response to sustained advocacy by Insurance Europe and other trade associations in the financial sector, the European Commission has decided to consult the financial industry on the expected impact of two provisions in the US tax reform law: the Base Erosion and Anti-Abuse Tax (BEAT) and the Global Intangible Low-Tax Income (GILTI) Scheme.
The Commission (DG TRADE and DG FISMA) has put together a questionnaire which seeks to assess whether discrimination towards the EU financial institutions can be ascertained and, consequently, whether these two provisions of the US tax reform law are compatible with World Trade Organisation (WTO) rules. Irrespective of the implications of these provisions for the US international obligations, the Commission also wishes to be able to appreciate their potential commercial and regulatory implications. The EC has indicated that the availability of data and measurable impact is in fact a pre-condition for further EC action against the US.
While the Commission has not given any deadline, responses to the questionnaire should be submitted by companies as soon as possible to the e-mail address trade-e1-request-box@ec.europa.eu.