2017 Transfer Pricing Deadlines

As we approach the end of the year, here are a couple deadlines to be aware of: Country-by-Country Reporting Notification For U.S. ultimate parent entities of multinational enterprises (“MNEs”) that are filing Internal Revenue Service Form 8975 and Schedules A (Form 8975) (“Country-by-Country Report”) for the year ending December 31, 2017, the Country-by-Country Report will [...]

2017 Transfer Pricing Deadlines 2018-02-20T17:55:36+00:00

Updated Guidance on Implementation of Country-by-Country Reporting

The Organisation for Economic Co-operation and Development (“OECD”) issued updated guidance (“Guidance”) on the implementation of country-by-country reporting (“CbC”) in September 2017.  The Guidance adds certain items to the version issued in July 2017.  The new items are: DEFINITION OF REVENUES. The Guidance provides that “all revenue, gains, income, or other inflows shown in the financial [...]

Updated Guidance on Implementation of Country-by-Country Reporting 2018-02-20T18:08:26+00:00

Things to Watch for in Country-by-Country Reporting

Country-by-country reporting (“CbC”) requires certain information and in forms that might not be immediately apparent.  Multinational enterprise (“MNE”) groups subject to CbC reporting should be aware of those requirements.  They include: Revenues; Aggregation; Withholding taxes; and Income tax paid. REVENUES.  For purposes of CbC reporting, revenues include more than just net sales.  The Internal Revenue Service [...]

Things to Watch for in Country-by-Country Reporting 2018-02-20T18:11:48+00:00

Proposed Template for Advance Pricing Agreements

The Advance Pricing and Mutual Agreement Program (“APMA”) of the Internal Revenue Service (“IRS”) has provided for public discussion, a draft updated template for use in drafting advance pricing agreements (“APAs”).  It is designed to “systemize how taxpayers propose terms for their APAs and standardize language used in executed APAs” as well as “improve efficiency [...]

Proposed Template for Advance Pricing Agreements 2018-02-20T18:13:42+00:00

Guidance on Implementation of Country-by-Country Reporting

The Organisation for Economic Co-operation and Development (“OECD”) issued updated guidance (“Guidance”) on the implementation of country-by-country (“CbC”) reporting in July 2017.  The Guidance includes the previously issued items and certain new ones.  They are: Extraordinary income and gain from investment activities. These amounts should be included in revenues in the CbC report. Definition of [...]

Guidance on Implementation of Country-by-Country Reporting 2017-11-13T01:07:52+00:00

Publication of U.K. Tax Policy

HM Revenue & Customs (“HMRC”) is requiring large businesses to publish their tax strategies as they relate to the United Kingdom.  The requirement applies to companies, partnerships, groups or sub-groups that for their previous tax year had either: Turnover above GBP 200 million; or Balance sheet over GBP 2 billion. For groups and sub-groups, the [...]

Publication of U.K. Tax Policy 2017-11-13T01:08:02+00:00

Delay in Application of Section 385 Documentation Requirements

The Internal Revenue Service (“IRS”) and the Department of the Treasury (“Treasury”) announced and invited comments on a one-year delay to the application of certain portions of the final regulations issued under section 385 of the Internal Revenue Code (“Section 385 Regulations”).  The affected regulations relate to the documentation necessary to determine whether an interest [...]

Delay in Application of Section 385 Documentation Requirements 2017-11-13T01:08:11+00:00

U.S. Tax Court Decision in Eaton v. Commissioner

Eaton Corporation and its subsidiaries (“Eaton”) entered two advanced pricing agreements (“APAs”) with the Internal Revenue Service (“IRS”): the first for Eaton’s 2001-2005 tax years and the second for its 2006-2010 tax years.  The scope of the APAs included transactions between (a) related-party manufacturing plants in Puerto Rico and the Dominican Republic (collectively, the “Island plants”) [...]

U.S. Tax Court Decision in Eaton v. Commissioner 2017-11-13T01:08:19+00:00

Nothing Lasts Forever: The U.S. Tax Court’s Decision in Amazon v. Commissioner

When Amazon.com, Inc. and its subsidiaries (collectively “Amazon”) established Amazon Europe Holding Technologies SCS (“AEHT”) in Luxembourg as Amazon’s European headquarters in 2004, AEHT entered a cost sharing arrangement with Amazon.com, Inc. and its U.S. subsidiaries (collectively “Amazon U.S.”) to share in ongoing intangible-development costs (“IDCs”) to the extent those IDCs benefited AEHT. As part [...]

Nothing Lasts Forever: The U.S. Tax Court’s Decision in Amazon v. Commissioner 2017-11-13T01:08:30+00:00