TEI's comments on the uniformity proposal - compilation of state filing data statute: letter submitted on September 7, 2006, by TEI President David L. Bernard to Shirley Sicilian, General Counsel of the Multistate Tax Commission.

On behalf of Tax Executives Institute, II am pleased to provide comments on the Multistate Tax Commission's revised Draft Model Uniform Statute on Reportable Transactions and State Filing Positions ("Model Statute"). The original statutory proposal, which was the subject of substantial public comment, including those from TEI, was revised to require taxpayers to report a "compilation of state return data" to each state. For the reasons set out below, the revised proposal remains flawed, reflecting not a meaningful step toward uniformity among the states but rather the ill-advised pursuit of an excessive information gathering policy that would circumvent existing mechanisms to obtain taxpayer information and possibly spawn legal challenges to the MTC's and States' authority. Equally important, the proposal would impose substantial costs and compliance burdens on taxpayers without any legitimate benefit to the states. We therefore urge the MTC and its members to set aside the proposal and commit themselves to working with the Institute and other business representatives to develop a more balanced approach to information gathering.

Background

Tax Executives Institute is the preeminent association of business tax executives in North America. Our more than 6,000 members represent 2,800 of the leading corporations in the United States, Canada, Europe, and Asia. TEI represents a broad cross-section of the business community, and is dedicated to developing and effectively implementing sound tax policy, to promoting the uniform and equitable enforcement of the tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and government alike. As a professional association, TEI is firmly committed to maintaining a tax system that works--one that is administrable and with which taxpayers can comply in a cost-efficient manner.

Members of TEI are responsible for managing the tax affairs of their companies and must contend daily with the provisions of the tax law relating to the operation of business enterprises. We believe that the diversity and professional training of our members--combined with our six-decade record of working cooperatively with tax authorities--enable us to bring a balanced and practical perspective to the issues raised by the Multistate Tax Commission's Model Statute.

The Development of the Model Statute

At its May 11, 2006, meeting, the MTC's Executive Committee directed its staff to...