This session will address practical considerations with respect to the application of the section 59A Base Erosion Anti-Abuse Tax, focusing particularly on issues addressed in the proposed and possibly final regulations. The discussion will include practical considerations, including multiple-party contracting approaches, the implications of general U.S. federal income tax principles on the determination of whether payments are “base erosion payments,” the application of anti-abuse rules, and practical considerations to address the potential application of the section 59A anti-abuse tax to U.S. taxpayers.
Section 250, which provides deductions for GILTI and FDII, was intended to make U.S. taxpayer’s neutral as to whether foreign derived intangible income is earned in the U.S. or outside the U.S. Proposed regulations under section 250 provide detailed information and documentation rules for purposes of determining a taxpayer’s foreign derived intangible income. This session will discuss the requirements of the proposed regulations and will explore, through case studies, the practical application of the proposed regulations, focusing on the different requirements for various sales and services transactions.
This session will explore the current proposals targeted at addressing digital businesses, focusing on the implications for U.S. multinationals and companies with activities in the United States. We will explore the approaches under consideration by the OECD, the EU and individual jurisdictions, including digital services taxes, changes to taxable presence standards in the U.S. under Wayfair and in non-US jurisdictions, implications for transfer pricing and particularly the value of marketing intangibles, and the role of minimum tax regimes, such as the U.S. GILTI regime in addressing the concerns raised by the taxation of digital businesses.
Increased access to information has changed the way that tax authorities approach taxpayer audit’s and controversies, including in the United States where new guidelines provide for the use of information technology to identify issues for large corporate audits. The new information reporting requirements in the EU (DAC 6) and elsewhere, increases the information that is potentially available to revenue authorities when auditing multinational taxpayers. This session will discuss recent developments in audit and controversy, including the implications of new information reporting rules, taxpayer rights with respect to the sharing of information, OECD coordinated audits, and practical considerations for companies in managing audit and controversy risk.
The entity classification rules, and particularly the check-the-box rules, historically have provided U.S. taxpayers with significant flexibility in domestic and international tax planning. This discussion will address how U.S. and non-U.S. tax reforms are affecting the use of disregarded entities and transactions, focusing particularly on the section 267A anti-hybrid rules, the corollary in section 245(e), the implications of the new foreign branch foreign tax credit basket, dual consolidated loss considerations and the operation of the FDII rules in relation to foreign branch activities.
This session will explore, through case studies the new considerations that are relevant to U.S. multinationals in acquisition, disposition and integration transactions. We will explore the implications of tax reform on traditional section 338(g) and check-and-sell structures, as well as taxable asset and stock purchases and tax-free reorganizations. The focus of this panel discussion will be on transactions that are being considered to specifically address changes made as part of U.S. tax reform.