Tag Archives: Taxes

Recent Chilean Tax Reform Reinforces Need for U.S. Tax Treaty

Chile is the fifth largest economy in South America and increasingly one of the most significant U.S. trading partners in the region. U.S. foreign direct investment into Chile was $39.9 billion for 2012 (the latest year for which official figures are available). And in 2013, the U.S. exported $17.6 billion of goods and services to … Continue Reading

Ruling Demonstrates Potential for Inversion Rules to Apply in Inbound Structures

In Private Letter Ruling 201432002 (the “PLR”), the IRS ruled that a foreign-to-foreign “F” reorganization did not implicate the Section 7874 anti-inversion rules.  As a result, a foreign corporation (that was 100 percent foreign owned) was not deemed to be a U.S. corporation for U.S. federal income tax purposes, despite the fact that it was … Continue Reading

10th Annual University of Florida International Tax Symposium

On Friday, October 31, I will be speaking at the 10th Annual University of Florida International Tax Symposium held at the University of Florida, Levin College of Law in Gainesville, Florida. I, along with the other speakers, will discuss important topics revolving around current and future international tax policy. The presentation will begin at 8:00 am in … Continue Reading

Local Law Shopping Through “Derivative Benefits”

Unlike U.S. persons who are subject to U.S. federal income tax on their worldwide income, foreign persons generally are subject to U.S. taxation on two categories of income: (i) certain types of passive U.S.-source income (e.g., interest, dividends, royalties and other types of “fixed or determinable annual or periodical income,” collectively known as FDAP), which … Continue Reading

Inbound U.S. Tax Planning With Inversions

With all of the recent negative publicity focused on the outbound restructuring of U.S. multinationals engaging in so-called “inversion” transactions (see prior blog “Corporate Inversions Showing No Signs of Slowing Down”), little, if any attention, has focused on the potential tax planning opportunities available in the inbound area resulting from the (likely unintended) consequences of … Continue Reading

Synthetic Investment in U.S. Real Estate by Foreign Investors

According to recent reports, foreign investment in commercial U.S. real estate exceeded $38.7 billion in 2013 – a 40 percent increase over 2012. Leading the way in 2013 were investors from Canada, China, Australia, Germany, and Singapore. This represents a dramatic increase from the 2009 collapse of the U.S. real estate markets, which caused foreign investments … Continue Reading

The NYU Summer Institute in Taxation Conference

On Tuesday, July 15, I will be speaking at an NYU School of Continuing Education conference in New York, NY. The Summer Institute in Taxation program is being held from July 14-25 and is ideal for new professionals that want a solid foundation in a specialized area of law or tax practice. Attorneys and accountants … Continue Reading

Check-the-Box Elections: Relevance in the International Context

One of the most powerful tools in cross-border tax planning is the ability to make a “check-the-box” election.  Pursuant to the entity classification regulations under Internal Revenue Code §7701 (the “check-the-box regulations”), certain business entities are permitted to choose their classification for U.S. federal income tax purposes by making a check-the-box election. The Federal tax … Continue Reading

Corporate Inversions Showing No Signs of Slowing Down

In a corporate inversion, a U.S. corporation (typically the parent of an affiliated group) becomes a wholly owned subsidiary of a foreign corporation (through a merger into the foreign corporation’s U.S. subsidiary) or transfers its assets to the foreign corporation, but at the same time keeps most of its operations in the United States. Inversions … Continue Reading

Retroactive Tax Planning

Converting Subpart F Income into Qualified Dividends U.S. shareholders of foreign corporations are generally not subject to tax on the earnings of such corporations until the earnings are repatriated to the shareholders in the form of a dividend.  Moreover, when a foreign corporation is resident in a jurisdiction with which the United States has a … Continue Reading

Bloomberg BNA’s U.S. International Reporting & Compliance Seminar

On Tuesday, May 20th, I will be speaking at a seminar presented by Bloomberg BNA, entitled U.S. International Tax Reporting & Compliance. Held at the Marriot Biscayne Bay in Miami, the conference will also feature speakers from accounting firms Ernst & Young, KPMG and PwC. I will be speaking on “Computing the Gain from the … Continue Reading
LexBlog