TEI’s advocacy is a prime benefit of membership. By participating in advocacy efforts, you can shape the corporate tax system—in the United States and around the world—to be more efficient and less burdensome. Below are several examples of TEI’s advocacy over the past several months. At the end of this column, you can find a link to additional advocacy and ways to further TEI’s efforts.
As of this writing, TEI’s comments on the changes to US federal and international tax rules enacted through the One Big Beautiful Bill Act (OBBBA) constitute the Institute’s most recent advocacy effort. TEI’s comments and recommendations address select corporate and international tax provisions in the OBBBA, including new Section 174A; modified Sections 168(k), 904(b), and 205(b)(3); and reinstated Section 958(b)(4).
TEI has also commented recently on Notice 2025-44, which announced the forthcoming withdrawal of final regulations on disregarded payment losses, related changes to the dual consolidated loss (DCL) rules under Section 1503(d), and the interaction of the DCL regime and top-up taxes enacted in connection with the Organisation for Economic Co-operation and Development’s (OECD’s) Pillar Two. TEI’s comments primarily address the DCL rules and draw on extensive practical experience with the current regulations to assist the Internal Revenue Service and Treasury Department in crafting a balanced regime that curbs inappropriate double-dipping while permitting the deduction of losses that do not offset income of foreign corporations.
Other recent comments on federal tax matters include a supplemental submission on proposed regulations under the corporate alternative minimum tax (CAMT). TEI has submitted several letters regarding CAMT since its enactment in the Inflation Reduction Act of 2022. These comments harness Institute members’ expertise at the intersection of financial reporting and tax. The latest letter reiterates several of TEI’s prior comments on CAMT and includes a new recommendation for a modification to adjusted financial statement income for stock-based compensation. TEI also filed a letter with the IRS regarding proposed instructions to Form 6765, Credit for Increasing Research Activities. The comments request guidance for taxpayers using statistical sampling and reiterate concerns TEI previously expressed concerning the draft of Form 6765.
TEI’s Canadian Commodity Tax and Canadian Income Tax Committees have been particularly busy of late, submitting several letters on Canadian and provincial tax matters including:
- improvements to the efficiency of Canadian tax administration;
- modifications to the Canadian withholding tax regime under Canadian Regulation 105 (colloquially known as Reg 105);
- proposed legislation to enhance the Canada Revenue Agency’s audit powers;
- recommendations that the British Columbia government replace British Columbia’s provincial sales tax with the harmonized sales tax;
- compliance with the Canadian excess interest and financing expense limitation regime;
- Canada’s 2025 pre-budget consultation along with TEI’s ideas for Canadian tax reform; and
- recommendations to the Canadian House of Commons’ Standing Committee on Finance regarding its pre-budget consultations for the 2025–2026 fiscal year.
In addition, TEI’s Canadian Commodity Tax and Canadian Income Tax Committees held their annual liaison meetings with the Canada Revenue Agency and Canadian Department of Finance in December. The Canadian liaison meetings are a superb example of TEI’s ability to engage with tax authorities in constructive and mutually beneficial ways and result from the longstanding efforts of TEI’s Canadian membership to build a strong relationship with the CRA and Finance. The Institute’s website regularly publishes the CRA’s written responses to TEI’s liaison meeting questions. (Finance, in contrast, does not provide written responses to TEI’s questions.)
Outside North America, TEI’s EMEA Chapter continues to engage with the European Commission on direct and indirect tax. Members of the EMEA Chapter serve on both the European Union (EU) Platform for Tax Good Governance and in the EU VAT Expert Group. EMEA Chapter members have also participated in several more informal discussions with the EU’s Directorate General for Taxation and Customs Union personnel on matters significant to the Institute. Last, TEI has surveyed its membership at the request of the EU on matters such as “decluttering” the EU tax regulatory environment and the potential introduction of an EU-wide taxpayer identification number.
On the multilateral side, TEI continues to engage with the OECD on its Pillars One and Two project addressing the digitization of the economy as well as on issues related to cross-border employee mobility and working from home. In addition, TEI’s legal staff and standing committees are actively monitoring progress on the G7’s agreement to implement a “side-by-side” system for US-headquartered multinational enterprises alongside the Pillar Two system applying to non-US-headquartered multinationals. As of this writing, it is unclear whether non-G7 countries will agree to a side-by-side system for US multinationals.
TEI’s worldwide advocacy would not be possible without the substantial and active participation of its members. The Institute’s advocacy is an opportunity to join with your fellow members to make tax issues important to you and your employer into “TEI issues.” TEI’s advocacy is done anonymously and represents the position of the Institute rather than that of any single member or company.
If you would like to get involved in TEI’s advocacy or have an issue you would like TEI to advocate for, please do not hesitate to reach out to any member of TEI’s legal staff, whose contact details appear at www.tei.org/contact-us. You can find all of TEI’s most recent advocacy efforts at www.tei.org/advocacy.
Ben Shreck is TEI tax counsel.
