Michael Danilack, deputy commissioner (international), IRS Large Business and International Division, today called out politicians for their ignorance and pandering. See 2013 TNT 23-4. Anybody watch the presidential debates? Remember how the President kept talking about "tax deductions for moving plants overseas"?
Discussing the OECD's base erosion and profit shifting (BEPS) initiative, Danilack commented that: "[P]oliticians may not understand [international tax] issues and may sometimes try "to paint international taxation with the broad brush of evasion and avoidance."
Speaking at a conference hosted by the Pacific Rim Tax Institute in Palo Alto, Calif., Danilack ... acknowledged that disputes occur and that difficult issues involving intangibles have yet to be addressed, but he said officials shouldn't "throw the baby out with the bathwater and talk about how the whole system doesn't work." The current regime should work, he said, adding, "There's nothing wrong with it aside from these areas where there are some really important questions that really need to be addressed.... The vast majority of what's going on internationally doesn't involve evasion or even avoidance.... The vast majority of what's going on is companies are trying to get it right."Pssst, Mr. Danilack. We agree with the sentiment, but don't mention it to your Boss! Taxpayers are best served with a voice of reason in your position.
