US treasury asked to withdraw Hungary tax treaty termination

Ranking Members of the United States’ Congressional committees have written to the US Treasury and the State Department to withdraw its termination of the long-standing tax treaty with Hungary.

The November 3 letter states that Treasury’s decision to unilaterally withdraw from a longstanding US tax treaty without any meaningful Congressional consultation is “particularly alarming.”

The letter states: “The Joe Biden Administration must view the actions of countries like Russia and Belarus as more offensive than a country’s mere opposition to a global tax agreement that tax administrations and experts have openly questioned and criticized.  The Administration’s inconsistent treatment of our current treaty partners further highlights the flaws in Treasury’s stated justification.”
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“In its negotiations of the OECD global tax agreement, this Administration has repeatedly overstepped its bounds without appropriate Congressional consultation as part of its ‘at all costs’ approach.  However, US tax treaties should not be used as a unilateral, retaliatory tool by an Administration to advance its domestic agenda,” it continues.