Base Erosion and Anti-Abuse Tax; Correcting Amendment, 9369-9370 [2020-02652]
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Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Rules and Regulations
25 CFR Part 211
Geothermal energy, Indians—lands,
Mineral resources, Mines, Oil and gas
exploration, Reporting and
recordkeeping requirements.
■
5. The authority citation for part 211
continues to read as follows:
PART 227—LEASING OF CERTAIN
LANDS IN WIND RIVER INDIAN
RESERVATION, WYOMING, FOR OIL
AND GAS MINING
Authority: Sec. 4, Act of May 11, 1938 (52
Stat. 347); Act of August 1, 1956 (70 Stat.
744); 25 U.S.C. 396a–g; 25 U.S.C. 2 and 9;
and Sec. 701, Pub. L. 114–74, 129 Stat. 599,
unless otherwise noted.
§ 211.55
25 CFR Part 225
Geothermal energy, Indians—lands,
Mineral resources, Mines, Oil and gas
exploration, Penalties, Reporting and
recordkeeping requirements, Surety
bonds.
[Amended]
6. In § 211.55(a), remove ‘‘$1,597’’ and
add in its place ‘‘$1,626’’.
■
12. The authority citation for part 227
continues to read as follows:
■
Authority: Sec. 1, 39 Stat. 519; and Sec.
701, Pub. L. 114–74, 129 Stat. 599, unless
otherwise noted.
§ 227.24
PART 213—LEASING OF RESTRICTED
LANDS FOR MEMBERS OF FIVE
CIVILIZED TRIBES, OKLAHOMA, FOR
MINING
■
[Amended]
13. In § 227.24, remove ‘‘$1,329’’ and
add in its place ‘‘$1,352’’.
PART 243—REINDEER IN ALASKA
25 CFR Part 226
Indians—lands.
■
7. The authority citation for part 213
continues to read as follows:
■
25 CFR Part 227
Indians—lands, Mineral resources,
Mines, Oil and gas exploration,
Reporting and recordkeeping
requirements.
Authority: Sec. 2, 35 Stat. 312; sec. 18, 41
Stat. 426; sec. 1, 45 Stat. 495; sec. 1, 47 Stat.
777; 25 U.S.C. 356; and Sec. 701, Pub. L.
114–74, 129 Stat. 599. Interpret or apply secs.
3, 11, 35 Stat. 313, 316; sec. 8, 47 Stat. 779,
unless otherwise noted.
Authority: Sec. 12, 50 Stat. 902; 25 U.S.C.
500K; and Sec. 701, Pub. L. 114–74, 129 Stat.
599.
25 CFR Part 243
Indians, Livestock.
§ 213.37
[Amended]
8. In § 213.37, remove ‘‘$1,329’’ and
add in its place ‘‘$1,352’’.
■
25 CFR Part 249
Fishing, Indians.
For the reasons given in the preamble,
the Department of the Interior amends
chapter I of title 25 Code of Federal
Regulations as follows.
14. The authority citation for part 243
continues to read as follows:
§ 243.8
[Amended]
15. In § 243.8(a) introductory text,
remove ‘‘$6,265’’ and add in its place
‘‘$6,376’’.
■
PART 249—OFF-RESERVATION
TREATY FISHING
PART 225—OIL AND GAS,
GEOTHERMAL, AND SOLID MINERALS
AGREEMENTS
■
Title 25—Indians
9. The authority citation for part 225
continues to read as follows:
Authority: 25 U.S.C. 2, and 9; 5 U.S.C.
301; and Sec. 701, Pub. L. 114–74, 129 Stat.
599, unless otherwise noted.
CHAPTER I—BUREAU OF INDIAN AFFAIRS,
DEPARTMENT OF THE INTERIOR
Authority: 25 U.S.C. 2, 9, and 2101–2108;
and Sec. 701, Pub. L. 114–74, 129 Stat. 599.
§ 249.6
§ 225.37
■
PART 140—LICENSED INDIAN
TRADERS
■
[Amended]
10. In § 225.37(a), remove ‘‘$1,692’’
and add in its place ‘‘$1,721’’.
■
1. The authority citation for part 140
continues to read as follows:
■
Authority: Sec. 5, 19 Stat. 200, sec. 1, 31
Stat. 1066 as amended; 25 U.S.C. 261, 262;
94 Stat. 544, 18 U.S.C. 437; 25 U.S.C. 2 and
9; 5 U.S.C. 301; and Sec. 701, Pub. L. 114–
74, 129 Stat. 599, unless otherwise noted.
§ 140.3
PART 226—LEASING OF OSAGE
RESERVATION LANDS FOR OIL AND
GAS MINING
9. The authority citation for part 226
continues to read as follows:
2. In § 140.3, remove ‘‘$1,329’’ and
add in its place ‘‘$1,352’’.
16. The authority citation for part 249
continues to read as follows:
[Amended]
17. In § 249.6(b), remove ‘‘$1,329’’ and
add in its place ‘‘$1,352’’.
Dated: January 23, 2020.
Tara Sweeney,
Assistant Secretary—Indian Affairs.
[FR Doc. 2020–02615 Filed 2–18–20; 8:45 am]
BILLING CODE 4337–15–P
■
Authority: Sec. 3, 34 Stat. 543; secs. 1, 2,
45 Stat. 1478; sec. 3, 52 Stat. 1034, 1035; sec.
2(a), 92 Stat. 1660; and Sec. 701, Pub. L. 114–
74, 129 Stat. 599.
[Amended]
■
Internal Revenue Service
26 CFR Part 1
PART 141—BUSINESS PRACTICES ON
THE NAVAJO, HOPI AND ZUNI
RESERVATIONS
10. In § 226.42, remove ‘‘$948’’ and
add in its place ‘‘$965’’.
RIN 1545–BO56
3. The authority citation for part 141
continues to read as follows:
§ 226.43
Base Erosion and Anti-Abuse Tax;
Correcting Amendment
Authority: 5 U.S.C. 301; 25 U.S.C. 2 and
9; and Sec. 701, Pub. L. 114–74, 129 Stat.
599, unless otherwise noted.
§ 141.50
[Amended]
4. In § 141.50, remove ‘‘$1,329’’ and
add in its place ‘‘$1,352’’.
■
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[Amended]
DEPARTMENT OF THE TREASURY
§ 226.42
■
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d. In paragraph (g), remove ‘‘$948’’
and add in its place ‘‘$965’’.
PART 211—LEASING OF TRIBAL
LANDS FOR MINERAL DEVELOPMENT
■
25 CFR Part 213
Indians—lands, Mineral resources,
Mines, Oil and gas exploration,
Reporting and recordkeeping
requirements.
9369
[TD 9885]
■
[Amended]
11. In § 226.43:
a. Remove ‘‘$94’’ each time it appears
and add in each place ‘‘$96’’ wherever
it appears in this section.
■ b. In paragraph (e), remove ‘‘$189’’
and add in its place ‘‘$193’’.
■ c. In paragraph (f), remove ‘‘$379’’ and
add in its place ‘‘$385’’.
■
■
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Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
This document contains
corrections to Treasury Decision 9885,
which was published in the Federal
SUMMARY:
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9370
Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Rules and Regulations
Register on Friday, December 6, 2019.
Treasury Decision 9885 implementing
the base erosion and anti-abuse tax,
designed to prevent the reduction of tax
liability by certain large corporate
taxpayers through certain payments
made to foreign related parties and
certain tax credits.
DATES: Effective date. This correction is
effective on February 19, 2020 and is
applicable on December 6, 2019.
FOR FURTHER INFORMATION CONTACT:
Concerning § 1.59A–9, Azeka J.
Abramoff, Sheila Ramaswamy, or Karen
Walny at (202) 317–6938; concerning
§ 1.6038A–2, Brad McCormack or
Anand Desai at (202) 317–6939 (not tollfree numbers).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9885) that
are the subject of this correction are
under sections 59A and 6038A of the
Internal Revenue Code.
Need for Correction
As published December 6, 2019 (84
FR 66968), the final regulations (TD
9885; FR Doc. 2019–25744) contained
errors that may prove misleading and
therefore need to be corrected.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
that has as a principal purpose of
avoiding a base erosion payment (or
reducing the amount of a base erosion
payment), the role of the intermediary
or intermediaries is disregarded as a
conduit, or the amount paid or accrued
to the intermediary is treated as a base
erosion payment, as appropriate.
*
*
*
*
*
(c) * * *
(2) * * *
(ii) * * * The arrangement between
FP, DC, and Corp A is deemed to result
in a $95x base erosion payment under
paragraph (b)(1) of this section because
DC’s payment to Corp A would have
been a base erosion payment if paid to
a foreign related party, and Corp A
makes a corresponding payment to FP
as part of the series of transactions that
has as a principal purpose of avoiding
a base erosion payment.
*
*
*
*
*
(5) * * *
(ii) * * * The transactions between
FP, DC, and Bank are deemed to result
in a base erosion payment under
paragraph (b)(1) of this section because
DC’s payment to Bank would have been
a base erosion payment if paid to a
foreign related party, and Bank makes a
corresponding payment to FP as part of
the series of transactions that has as a
principal purpose of avoiding a base
erosion payment.* * *
*
*
*
*
*
■ Par. 3. Section 1.6038A–2(g) is
amended by revising the third sentence
to read as follows:
§ 1.6038A–2
PART 1—INCOME TAXES
Requirement of return.
*
*
*
*
*
(g) * * * Paragraph (b)(7)(ix) of this
section applies to taxable years
beginning on or after June 7,
2021. * * *
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.59A–9 is amended
by revising the text of paragraphs (b)(1)
and (c)(2)(ii) and the first sentence of
paragraph (c)(5)(ii) to read as follows:
■
§ 1.59A–9 Anti-abuse and
recharacterization rules.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2020–02652 Filed 2–18–20; 8:45 am]
BILLING CODE 4830–01–P
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*
*
*
*
*
(b) * * *
(1) * * * If a taxpayer pays or accrues
an amount to one or more
intermediaries (including an
intermediary unrelated to the taxpayer)
that would have been a base erosion
payment if paid or accrued to a foreign
related party, and one or more of the
intermediaries makes (directly or
indirectly) corresponding payments to
or for the benefit of a foreign related
party as part of a transaction (or series
of transactions), plan or arrangement
VerDate Sep<11>2014
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 1010
Financial Crimes Enforcement
Network; Inflation Adjustment of Civil
Monetary Penalties
Financial Crimes Enforcement
Network (‘‘FinCEN’’), Treasury.
ACTION: Final rule.
AGENCY:
PO 00000
Frm 00008
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FinCEN publishes this final
rule to reflect inflation adjustments to
its civil monetary penalties (‘‘CMPs’’) as
mandated by the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (collectively referred to
herein as the ‘‘2015 Act’’). This rule
adjusts certain CMPs within the
jurisdiction of FinCEN to the maximum
amount required by the 2015 Act.
DATES: Effective February 19, 2020.
FOR FURTHER INFORMATION CONTACT: The
FinCEN Resource Center at (800) 767–
2825 or email frc@fincen.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
In order to improve the effectiveness
of CMPs and to maintain their deterrent
effect, the Federal Civil Penalties
Inflation Adjustment Act of 1990, 28
U.S.C. 2461 note (‘‘Inflation Adjustment
Act’’), as amended by the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (Pub. L. 114–
74) (‘‘2015 Act’’), requires Federal
agencies to adjust each CMP provided
by law within the jurisdiction of the
agency. The 2015 Act requires agencies
to adjust the level of CMPs with an
initial ‘‘catch-up’’ adjustment through
an interim final rulemaking and to make
subsequent annual adjustments for
inflation, without needing to provide
notice and the opportunity for public
comment otherwise required by 5 U.S.C.
553. The 2015 Act provides that any
increase in a CMP shall apply to CMPs
that are assessed after the date the
increase takes effect, regardless of
whether the underlying violation
predated such increase.1
II. Method of Calculation
The method of calculating CMP
adjustments applied in this final rule is
required by the 2015 Act. Under the
2015 Act and the Office of Management
and Budget (‘‘OMB’’) guidance required
by the 2015 Act, annual inflation
adjustments subsequent to the initial
catch-up adjustment are to be based on
the percent change between the
Consumer Price Index for all Urban
Consumers (‘‘CPI–U’’) for the October
preceding the date of the adjustment
and the prior year’s October CPI–U. As
set forth in OMB Memorandum M–20–
05 of December 16, 2019, the adjustment
multiplier for 2020 is 1.01764. In order
to complete the 2020 annual
adjustment, each current CMP is
1 The increased CMPs, however, apply only with
respect to underlying violations occurring after the
date of enactment of the 2015 Act, i.e., after
November 2, 2015.
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]]>Agencies
[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Rules and Regulations]
[Pages 9369-9370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02652]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9885]
RIN 1545-BO56
Base Erosion and Anti-Abuse Tax; Correcting Amendment
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to Treasury Decision 9885,
which was published in the Federal
[[Page 9370]]
Register on Friday, December 6, 2019. Treasury Decision 9885
implementing the base erosion and anti-abuse tax, designed to prevent
the reduction of tax liability by certain large corporate taxpayers
through certain payments made to foreign related parties and certain
tax credits.
DATES: Effective date. This correction is effective on February 19,
2020 and is applicable on December 6, 2019.
FOR FURTHER INFORMATION CONTACT: Concerning Sec. 1.59A-9, Azeka J.
Abramoff, Sheila Ramaswamy, or Karen Walny at (202) 317-6938;
concerning Sec. 1.6038A-2, Brad McCormack or Anand Desai at (202) 317-
6939 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9885) that are the subject of this
correction are under sections 59A and 6038A of the Internal Revenue
Code.
Need for Correction
As published December 6, 2019 (84 FR 66968), the final regulations
(TD 9885; FR Doc. 2019-25744) contained errors that may prove
misleading and therefore need to be corrected.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.59A-9 is amended by revising the text of paragraphs
(b)(1) and (c)(2)(ii) and the first sentence of paragraph (c)(5)(ii) to
read as follows:
Sec. 1.59A-9 Anti-abuse and recharacterization rules.
* * * * *
(b) * * *
(1) * * * If a taxpayer pays or accrues an amount to one or more
intermediaries (including an intermediary unrelated to the taxpayer)
that would have been a base erosion payment if paid or accrued to a
foreign related party, and one or more of the intermediaries makes
(directly or indirectly) corresponding payments to or for the benefit
of a foreign related party as part of a transaction (or series of
transactions), plan or arrangement that has as a principal purpose of
avoiding a base erosion payment (or reducing the amount of a base
erosion payment), the role of the intermediary or intermediaries is
disregarded as a conduit, or the amount paid or accrued to the
intermediary is treated as a base erosion payment, as appropriate.
* * * * *
(c) * * *
(2) * * *
(ii) * * * The arrangement between FP, DC, and Corp A is deemed to
result in a $95x base erosion payment under paragraph (b)(1) of this
section because DC's payment to Corp A would have been a base erosion
payment if paid to a foreign related party, and Corp A makes a
corresponding payment to FP as part of the series of transactions that
has as a principal purpose of avoiding a base erosion payment.
* * * * *
(5) * * *
(ii) * * * The transactions between FP, DC, and Bank are deemed to
result in a base erosion payment under paragraph (b)(1) of this section
because DC's payment to Bank would have been a base erosion payment if
paid to a foreign related party, and Bank makes a corresponding payment
to FP as part of the series of transactions that has as a principal
purpose of avoiding a base erosion payment.* * *
* * * * *
0
Par. 3. Section 1.6038A-2(g) is amended by revising the third sentence
to read as follows:
Sec. 1.6038A-2 Requirement of return.
* * * * *
(g) * * * Paragraph (b)(7)(ix) of this section applies to taxable
years beginning on or after June 7, 2021. * * *
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2020-02652 Filed 2-18-20; 8:45 am]
BILLING CODE 4830-01-P
