USCIB Member Spotlight: EY’s Marna Ricker Writes About Implementing Pillar Two

Published on October 26, 2023

USCIB member EY’s Marna Ricker authored a post on “Implementing Pillar Two Requires Resources, Flexibility,” in which she discusses the critical phase of the global minimum tax project.

She writes: “Like businesses, governments should be focusing on the practical aspects of applying and administering the new rules.

“The G20-led project on addressing the tax challenges of the digitalisation of the economy is entering a critical phase as jurisdictions work to enact Pillar Two global minimum taxes even while technical and administrative aspects of the new system are still being hammered out in the Inclusive Framework. There is much businesses need to do to be ready to comply with widespread implementation, and much preparation ahead for tax administrations as well. 

“Smooth implementation of Pillar Two is in the interest of both businesses and governments and is an urgent matter given that many countries are working to have global minimum tax rules in place by the end of the year. Businesses are trying to understand the new compliance obligations following the rules and working through the complex computations to determine where they may have top-up taxes due beginning in 2024. In addition, businesses are monitoring how the introduction of minimum tax rules may be accompanied by other changes in the design of corporate income taxes in the countries where they operate.”

To read the full post, please click here.

About the author: Marna Ricker, EY Global Vice Chair – Tax, is an EY veteran of more than 28 years and oversees all aspects of the EY Tax strategy, its offerings and client services for the EY Global Tax service line, which comprises more than 76,000 EY Tax, People Advisory Services (PAS) and Law professionals worldwide.

Treasury’s Michael Plowgian Headlines Tax Webinar on OECD Multilateral Convention

Published on October 25, 2023

Deputy Assistant Secretary of Treasury Michael Plowgian led a team of his Treasury Department colleagues, Elizabeth Bell, Chris Bello, and Huzefa Mun in an exclusive USCIB member tax webinar on October 20 on the draft text of the Multilateral Convention to Implement Amount A of Pillar One (MLC).

The draft text was released just on October 11 and followed the same day with the U.S. Treasury Department consultation request regarding the same.

The Treasury team was joined on the webinar panel by USCIB International Tax Counsel Rick Minor and USCIB Tax Committee Chair John Stowell, head of tax at The Walt Disney Company. Topics discussed were the mechanics of certain U.S.-driven provisions in the MLC, the progress of Amount B deliberations and the latest on the once and potentially future DST moratorium linked to the MLC.

“The webinar discussion was a good warmup to the OECD-USCIB Tax Conference on October 30-31,” said Minor.

USCIB Signs Letter to White House on US-EU Summit, Urges Against EU Overreach

Published on October 25, 2023

USCIB joined business associations, including the U.S. Chamber of Commerce and the National Association of Manufacturers, in signing a letter to President Joe Biden encouraging pushback against several deleterious European measures ahead of the U.S.-EU Summit on October 20.

The letter highlighted numerous pressing concerns. The EU’s desire to remain competitive in the digital sector and to improve its digital sovereignty has led to measures that hurt American businesses, such as the AI Act and the EU Cloud Services Scheme (EUCS). Such policies, though well-intentioned, would selectively apply rules to American, European and Chinese AI models and would sideline American cloud providers.

Additionally, the EU’s proposed pharmaceuticals legislation would weaken IP protections, which would hurt the American pharmaceutical industry. The letter also asserts that the newly adopted Corporate Sustainability Reporting Directive (CSRD) and proposed Corporate Sustainability Due Diligence Directive (CSRD), while beneficial to raising awareness of environmental and human rights concerns, place unrealistic burdens and unfair liability risks on companies.

Separately, the letter urges transatlantic alignment and leadership ahead of the upcoming WTO 13th Ministerial Conference (MC13) on issues such as renewal of the e-commerce moratorium, reform to the dispute settlement system and opposition to expansion of the TRIPS waiver to COVID-19 diagnostics and therapeutics.

“The U.S. and Europe must stand united and avoid measures that erode our combined strength and ability to demonstrate leadership in an increasingly complex geopolitical environment,” the letter asserts.

USCIB Participates at Internet Governance Forum (IGF) in Kyoto, Hosts USCIB Foundation/BIAC Roundtable on AI 

Published on October 23, 2023
Elizabeth Thomas Raynaud (OECD), Nicky Jackson Colaco (Roblox), Nicole Primmer (Business at OECD), Paula Bruening (Casentino Strategies), Barbara Wanner (USCIB), Liz Thomas (Microsoft), Maylis Berviller (BIAC), Nan Schechter (USCIB), Minami Kakuda (BIAC)

USCIB attended the 18th Internet Governance Forum (IGF) in Kyoto earlier this month. The Forum featured the theme of “The Internet We Want – Empowering All People” and was headlined by notable speakers such as Japanese Prime Minister Fumio Kishida. USCIB Vice President for ICT Policy Barbara Wanner was on the ground, along with USCIB Policy Associate Nan Schecter.   

Wanner coordinated USCIB members at the IGF including Amazon, Disney, EY, Google, Lego, Meta, Microsoft, Netflix and Verisign. USCIB members offered insights and expertise throughout the week in main sessions, workshops, and the “hallway meetings” that participants have come to value from the IGF. USCIB also participated in conversations on critical policy topics, including responsible AI governance, the upcoming WSIS+20 review to renew and reaffirm the IGF mandate, negotiations for a UN Cybercrime Convention that will prioritize law enforcement and stifle criminal activity and the Declaration for the Future of the Internet. 

A joint project between Business at OECD (BIAC) and The USCIB Foundation, entitled “Data Privacy in the Metaverse and Immersive Technologies,” was also spotlighted at two IGF side events. 

On October 9, USCIB members and stakeholders convened at a roundtable to discuss data governance issues related to emerging metaverse and immersive technologies. The conversation focused on the Asia Pacific region and highlighted how companies such as NEC and Toyota are employing metaverse training, content development and research funding to promote growth in the region of the metaverse. 

On October 11, Wanner moderated the panel “Creating virtual worlds? A case for innovation and policy that protects users and fosters trust.” Part of the Nikkei Digital Forum, this premier event featured speakers from the OECD, Microsoft, Roblox, and the Japan-based Center for International Economic Collaboration who discussed the status of development and adoption of immersive technologies, as well as necessary policy considerations for its deployment. 

“I want to thank the Government of Japan for hosting such an important event and for highlighting AI governance as the dominant topic for the 18th Forum,” said Wanner. She continued, “IGF as a whole, as well as the joint events between The USCIB Foundation and BIAC, allowed our members to share their technology priorities and enabled us to advocate for balanced policy and regulatory approaches to AI and the Internet.” 

Translating Vision Into Action at the Halfway Point: Business for the 2030 Agenda

Published on October 19, 2023
Norine Kennedy

Blog Post by USCIB SVP Norine Kennedy

October 19, 2023

Last month in New York, the United Nations General Assembly (UNGA) witnessed unprecedented participation, with 40,000 attendees and over 2,000 bilateral meetings. A gathering with over 13,000 country delegates, and 2,600 members of the media registered for the general debate and its more than 500 affiliated events. Among the events was the SDG Action Weekend, marking a positive (but overdue) shift towards a more inclusive UN engaging the wide array of important non-governmental entities essential to implementation.

The private sector played a significant role, emphasizing its contribution to the Sustainable Development Goals (#SDGs). The USCIB UNGA78 High-Level Business Roundtable highlighted the private sector’s role in shared prosperity and sustainability.  Given that as the Major Groups and Stakeholders stated so clearly in their SDG weekend event, the international community is “halfway there, but nowhere near” to the 2030 Agenda, USCIB’s Moving the Needle (MTN) initiative is shining a spotlight on the “what” and “how” of partnering for impact with business.

On September 18, MTN introduced two solutions-oriented reports: ‘Roadmap for Results’ and ‘Business & the UN 2.0.’ These reports offer tools, approaches, and partnerships for translating vision into tangible progress, working with and through the multilateral system to address multiple challenges.  Read together, they offer ideas to strengthen the UN, helping it become more effective, resilient, inclusive, and transparent.

‘Business & the UN 2.0’ highlights an enhanced win-win partnership between businesses and the UN. It recognizes the massive investment required for the 2030 agenda, estimated at $5-7 trillion annually, with the potential to unlock $12 trillion in market prospects.

Based on its decades of experience as a responsible actor in inter-governmental forums, MTN envisions a revitalized UN system with private sector involvement at every level, from shaping agendas to crisis management.

‘Roadmap for Results’ emphasizes private sector involvement beyond financing, spotlighting private sector innovation, scalability, leadership, and communication to accelerate action. Sustainability metrics, data analytics, AI and partnerships are a few private sector tools to catalyze SDG progress. The report discusses where public-private partnerships can advance science and solidarity as key to achieving the 2030 Agenda.

With the UN Summit of the Future a year away, USCIB’s MTN initiative continues to make the case for closer connections and alliances with business in an international community that is being pulled apart by geo-political, economic and domestic forces.  The time to move the needle is now.

Visit our MTN webpage to access the two reports.

Rick Minor Quoted in Bloomberg Tax on Yellen, Advocates for One-Year Extension of DST Moratorium   

Published on October 19, 2023

USCIB VP and International Tax Counsel Rick Minor was quoted in a Bloomberg Tax article yesterday regarding Treasury Secretary Janet Yellen’s statement regarding the Pillar One Multilateral Convention deliberations timeline being extended into 2024. Yellen was silent on the moratorium on digital services taxes (DSTs) that is set to expire at the end of this year.

In the article, Minor was quoted as saying, “Yellen’s statement clarifies the timeline, and pushing the process into 2024 makes sense, to give Treasury a realistic chance to digest and react to business feedback to the draft treaty.”

Minor was also quoted as saying he “hoped an announcement will be made soon about extending the DST moratorium. Such a move would be ‘natural.’”

But what Minor actually stated to Bloomberg was “it would now be natural to extend the DST moratorium for another year if the multilateral convention (MLC) signing timeline for 2024 cannot yet be defined and we hope that such an announcement can be made soon from the OECD.”

This will surely be a topic during the upcoming OECD-USCIB International Tax Conference at the Four Seasons in Washington, DC October 30-31.

The full article is available with a subscription to Bloomberg Tax and can be accessed here.

 

Annual Engaging Business Forum Gathers Experts to Grapple With Complex Human Rights Challenges

Published on October 18, 2023
USCIB President and CEO Whitney Baird in Atlanta

USCIB, the International Organization of Employers (IOE) and the U.S. Chamber of Commerce hosted this year’s annual Engaging Business Forum (EBF) from October 11-12. As the largest business and human rights conference in the United States, the conference brought together nearly 500 public policy leaders from multinational companies, experts in human rights and sustainability, as well as representatives of civil society and government.

USCIB’s new President and CEO Whitney Baird reflected on the EBF’s unique value proposition for USCIB members and stakeholders.

“I am blown away by the business community’s engagement on human rights, labor rights and sustainability at large,” said Baird. “Our members are grappling with some extremely complex policy issues, which is why the discussions this week are so important; only when we come together to reflect on challenges and candidly share our perspective, can we effectively shape policies that work for all stakeholders.”

IOE Secretary General Roberto Suárez Santos, UN High Commissioner for Human Rights Volker Türk, and ILO Director-General Gilbert Houngbo were among this year’s speakers, along with prominent companies such as Disney, Walmart, Apple, Mondelez, among others.

Over the two-day conference, participants heard from experts about timely and critical topics such as corporate political responsibility and business and human rights, stakeholder right information, Artificial Intelligence (AI) and human rights, practical challenges of just transition and bringing living wage to life.

Hosted annually by Coca-Cola, EBF has become known for its innovative panels and eminent speakers, who have anticipated trends and helped shape industry-leading responsible business practice. The Forum is also unique in that it provides a platform for leaders from business and government to engage in candid discussions about practical solutions to complex human rights challenges.

“The business community is firmly committed to upholding the UN Guiding Principles on Business and Human Rights,” said USCIB Director for CRLA Ewa Staworzynska. “In order to advance global progress on human rights, States must protect human rights, and businesses must respect human rights.”

Minor is Guest Speaker at Keidanren Quarterly Tax Committee Meeting  

Published on October 13, 2023

Rick Minor, USCIB VP and international tax counsel, was the featured speaker at the Japanese Keidanren third quarter tax committee meeting on October 12.

Keidanren is the largest industry association in Japan and is roughly equivalent to a national Chamber of Commerce.

Minor was asked to present to the committee on the U.S. views of the Two-Pillar Solution and the significance of this week’s Pillar One Multilateral Convention release and the related U.S. consultation request. Over 60 members of the Keidanren tax committee attended the virtual meeting.

Translating Sustainability Vision Into SDG Action at the Halfway Point: Business for the 2030 Agenda 

Published on October 12, 2023

Last month in New York, the 78th session of the United Nations General Assembly (UNGA78) witnessed unprecedented participation with 40,000 attendees and over 2,000 bilateral meetings. Over 13,000 country delegates and 2,600 members of the media registered for the general debate and over 500 affiliated events1. Among the main events was the UN’s first-ever SDG Action Weekend, which marked a positive (but overdue) shift towards a more inclusive UN, providing a recognized space for the wide array of important non-governmental entities essential to implementation.  

The private sector played a significant role throughout UNGA78, emphasizing its contribution to the Sustainable Development Goals (SDGs). USCIB’s UNGA78 High-Level Business Roundtable highlighted the private sector’s role in shared prosperity and sustainability. USCIB’s Moving the Needle (MTN) initiative shined a spotlight on the “what” and “how” of partnering for impact with business, following clear calls by Major Groups and Stakeholders that the international community is “halfway there, but nowhere near” to the 2030 Agenda. 

On September 18, USCIB launched two MTN solutions-oriented reports: Roadmap for Results and Business & the UN 2.0. These reports describe private sector tools, approaches, and partnerships for translating the 2030 Agenda’s vision into tangible progress, while working with and through the multilateral system to address multiple challenges. Read together, the reports offer ideas to strengthen the UN, helping it become more effective, resilient, inclusive, and transparent. 

Business & the UN 2.0 highlights an enhanced win-win partnership between businesses and the UN. It recognizes the massive investment required for the 2030 agenda, estimated at $5-7 trillion annually, with the potential to unlock $12 trillion in market prospects. 

Citing USCIB’s’ decades of experience as a responsible actor in inter-governmental forums, MTN envisions a revitalized UN system with private sector involvement at every level, from shaping agendas to advancing systems-thinking approaches to responding to natural disasters with the international community. 

Guy Ryder (UN) speaks at the USCIB High Level Roundtable during UNGA78
Guy Ryder (UN)

Roadmap for Results emphasizes private sector involvement beyond financing, spotlighting private sector innovation, scalability, leadership, knowhow and communication to accelerate action. Sustainability metrics, data analytics, AI, and partnerships are but a few private sector tools to catalyze SDG progress. The report discusses where public-private partnerships can advance science and solidarity as key to achieving the 2030 Agenda. 

With the UN Summit of the Future a year away, USCIB’s MTN initiative continues to make the case for closer connections and alliances with business in an international community that is being pulled apart by geo-political, economic, and domestic forces.  The time to move the needle in partnership with business is now. 

Arroyo Represents USCIB at Annual ICC Americas Regional Meeting

Published on October 11, 2023

The International Chamber of Commerce (ICC) held its annual Regional Consultative Group of the ICC Americas group in the first week of October. Hosted this year by ICC Argentina in Buenos Aires, the three-day event gathered representatives from nearly all countries in the region, including USCIB Policy Manager for Corporate Responsibility and Labor Affairs Jose Arroyo, who represented the U.S.

Jose Arroyo

According to Arroyo, the productive meeting allowed national committees to discuss key business trends and challenges and opportunities for collaboration to strengthen business development, trade facilitation, responsible business conduct, and economic integration in the region.

ICC Secretary General John Denton spoke at the meeting to address core issues relating to support for MSMEs, digitalization and sustainability.

“This meeting was a great opportunity to strengthen the engagement and relationships between USCIB and other countries in North and South America,” said Arroyo. “We look forward to advancing our collaboration with our fellow National Committees.”