At its recent 27th meeting in Geneva, the UN Committee of Experts discussed several items that could impact shipping specifically and, potentially, extend to international transportation generally. The Committee has requested that comments on any of its proposals be delivered to the UN Secretariat by November 10, 2023 and all proposals are available at the…
Continue reading…Shipping Challenge to EU Implementation of Pillar Two
Pillar 2 of the OECD BEPS project presents a number of problems for the shipping industry. Although there is a carve-out for shipping, its scope is inconsistent with the scope of many, if not all, tonnage tax regimes and it creates a sub-category of shipping income that is subject to limitation for exemption. As published in…
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COVID-19 and Seafarers: Tax Shoals Ahead
Reprinted courtesy of Tax Notes International. 106 Tax Notes Int’l 1279 (June 6, 2022), by James R. Border and Silvia Boiardi The disruptions COVID-19 caused for the seafaring workforce have been well documented, and general guidance has been provided by the OECD, the IMF, and the United Nations, as well as via the Neptune Declaration…
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U.S. Ends Hong Kong Transportation Agreement: The ‘Principle of Least’ Upended?
Reprinted courtesy of Tax Notes. 169 Tax Notes Federal 1317 (Nov. 23, 2020). By Jim Border In sociology, the “principle of least interest” posits that the person who cares the least about a relationship has the most power over it. In reality, however, that is not always the case. By providing notice of termination of…
Continue reading…United States Notifies Hong Kong of Suspension of Shipping Tax Agreement
The United States Department of State announced August 19 that it had notified the Hong Kong authorities of the suspension or termination of the agreement between the United States and Hong Kong for the reciprocal tax exemption for income derived from the international operation of ships. This action is in furtherance of The President’s Executive…
Continue reading…Taxation of Seafarers on Vessels Detained by Covid-19
As the International Maritime Organization recognizes the Day of the Seafarer, it is notable that the tax protections offered crew under treaty and domestic law may not apply to those individuals engaged on vessels which are out of service due to the pandemic. Issues concerning whether a vessel that is out of service is engaged…
Continue reading…World Oceans Day – The Often Unsung Heroes
Today is International Oceans Day and recognition must be given to the efforts of organizations outside the common public view – the International Maritime Organization and the Organization for Economic Cooperation and Development. The efforts of both organizations, their members and staff are to be comended. The #IMO is the global standard-setting authority for the…
Continue reading…Bearer Share Regulations under Section 883 of the Code Invalidated by the D.C. Circuit in Good Fortune Shipping SA v. Commissioner
On July 27 the District of Columbia Circuit Court of Appeals issued its opinion in Good Fortune Shipping SA v. Commissioner, No. 17-1160, reversing the Tax Court and invalidating the “bearer share” regulations under § 883 of the Internal Revenue Code. Section 883(c)(1) exempts the United States source income from the international operation of ships…
Continue reading…US Tax Court Upholds Validity of Bearer Share Regulations under Section 883
On March 28, the US Tax Court issued its opinion in Good Fortune Shipping, S.A. v. Commissioner, 148 T.C. No. 10, upholding the validity of the “bearer share” regulations under section 883 of the Internal Revenue Code. Good Fortune filed a notice of appeal to the U.S. Court of Appeals for the D.C. Circuit on June 19….
Continue reading…U.S. Joint Committee on Taxation Publishes Paper on Corporate Integration
In preparation for a Senate hearing on corporate integration, the Staff of the Joint Committee on Taxation has published “Overview of Approaches to Corporate Integration.” The paper is available. The Joint Committee’s analysis covers what is familiar ground for many, suggesting systems that have been tried and abandoned in some countries and systems still in effect in…
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