[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Rules and Regulations]
[Pages 8538-8539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3199]


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DEPARTMENT OF DEFENSE

48 CFR Part 229

[DFARS Case 2003-D032]


Defense Federal Acquisition Regulation Supplement; Resolving Tax 
Problems

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update text pertaining to 
resolution of tax problems under DoD contracts. This rule is a result 
of a transformation initiative undertaken by DoD to dramatically change 
the purpose and content of the DFARS.

EFFECTIVE DATE: February 22, 2005.

FOR FURTHER INFORMATION CONTACT: Mr. Euclides Barrera, Defense 
Acquisition Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-
0296; facsimile (703) 602-0350. Please cite DFARS Case 2003-D032.

SUPPLEMENTARY INFORMATION: 

A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 
http://www.acq.osd.mil/dpap/dfars/transf.htm.
    This final rule is a result of the DFARS Transformation initiative. 
The rule revises DFARS 229.101 to remove text pertaining to (1) 
resolution of issues regarding the applicability of taxes under DoD 
contracts; and (2) tax relief agreements between the United States and 
European governments. This text has been relocated to the new DFARS 
companion resource, Procedures, Guidance, and Information (PGI), 
available at http://www.acq.osd.mil/dpap/dars/pgi.
    DoD published a proposed rule at 69 FR 48445 on August 10, 2004. 
DoD received no comments on the proposed rule. Therefore, DoD has 
adopted the proposed rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the rule relocates DoD procedural information related to tax 
relief, with no substantive change in policy.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 229

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.


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Therefore, 48 CFR part 229 is amended as follows:

PART 229--TAXES

0
1. The authority citation for 48 CFR part 229 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.


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2. Subpart 229.1 is revised to read as follows:

Subpart 229.1--General

Sec.
229.101 Resolving tax problems.


229.101  Resolving tax problems.

    (a) Within DoD, the agency-designated legal counsels are the 
defense agency General Counsels, the General Counsels of the Navy and 
Air Force, and for the Army, the Chief, Contract Law Division, Office 
of the Judge Advocate General.
    (c) For guidance on directing a contractor to litigate the 
applicability of a particular tax, see PGI 229.101(c).
    (d) For information on tax relief agreements between the United 
States

[[Page 8539]]

and European foreign governments, see PGI 229.101(d).

[FR Doc. 05-3199 Filed 2-18-05; 8:45 am]
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