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The Organization for Economic Co-Operation and Development (OECD) Global Tax Deal (Global Tax Deal)

1. Purpose

This memorandum aims to clarify the implications of the Global Tax Deal on U.S. law, reaffirming the need for Congressional action for any effect and emphasizing investigations into foreign tax compliance issues.

2. Key Actions And Directives
  • Notify OECD about Tax Deal Status:  The Secretary of the Treasury and the U.S. Permanent Representative to the OECD will inform about the status of the Global Tax Deal.
  • Investigate Foreign Tax Compliance:  The Secretary of the Treasury is tasked with examining any non-compliance by foreign countries with U.S. tax treaties or any extraterritorial tax rules affecting American firms.
  • Consult on Protective Actions:  The United States Trade Representative will work with the Secretary of the Treasury to assess foreign tax measures and explore potential protective measures.
  • Deliver Findings and Recommendations:  The Secretary of the Treasury must provide findings and recommendations to the President within 60 days.
3. Important Points
  • Global Tax Deal Lacks U.S. Force:  The memorandum states the Global Tax Deal won't apply in the U.S. without Congressional approval.
  • Economic Competitiveness Focus:  The primary intent is to safeguard the U.S. economic competitiveness and sovereignty in taxation.
  • Impact on American Companies:  Failure to comply with international tax standards may lead to retaliatory tax measures against American companies.
  • No Legal Rights Created:  The memorandum does not establish any enforceable rights or benefits against the United States.
  • Preservation of Existing Authority:  Existing legal authorities of executive departments and agencies remain intact and unaffected by this memorandum.
  • Implementation Within Legal Bounds:  The execution of the memorandum is conditioned to conform with applicable law and available appropriations.

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