In a 207 page opinion the Tax Court ruled March 23, 2017 that the IRS’s adjustment with respect to Amazon.Inc’s transfer pricing buy-in payment for an intragroup cost sharing agreement (CSA) is arbitrary, capricious, and unreasonable.[1]   Another major blow for the IRS in a string of such losses starting with VERITAS[2] (2009), the 2010 Xilinx[3] about-face…

Lower energy cost is a major factor for U.S. manufacturers … to be able to offer on par production costs to China, and 10 percent to 20 percent lower costs than European manufacture. I’ve been remiss in my blogging since the surprise victory of the presidential election.  It is not because I think the apocalypse…

To refresh memories, several months ago I posted part 1 of this study on Kluwer’s International Tax Blog: Application of TNMM to Starbucks Roasting Operation: Seeking Comparables Through Understanding the Market  Part 1 briefly describes my advocated transfer pricing approach drawn from my transfer pricing law treatise and my corresponding research based upon it.  My…

the world is full of black and grey hat tax administrations. The U.S. has the opportunity to leverage its power as the world’s safe (tax) haven for bi-lateral information exchange as a carrot – stick policy tool to clean them up, and move them to become white hat, best practices tax administrations.

On June 27, 2016 the EU Commission published the long awaited Starbucks State Aid decision (see here).  The EU Commission’s decision challenges the outcome of the Advanced Pricing Agreement (APA) between the Netherlands Tax Authority (Tax Authority) and Starbucks Manufacturing BV (SMBV), a wholly owned and controlled coffee roasting operation. Below is the Part I…

William Byrnes with Haydon Perryman This month we turn our attention to the recently revised 2016 W-8BEN-E form which has 30 parts over eight pages that can be catalogued into four sections. The IRS released its previous substantial update of the W-8BEN-E in February 2014 and in April 2016 its most recent revisionary updated form with accompanying…

In highly dramatic fashion the French tax authorities and IT specialists raided Google’s headquarters and McDonalds. I don’t own Google stock. I’m not in favor of Google’s near monopoly on search (though it has accomplished this by offering a really great product and (free) work tools that make my life much easier).  I don’t eat…

This month I will discuss the important topic for the anti-money laundering compliance officer, wherein the AML systems overlap with the requirement for tax compliance, and that tax compliance requirement requires tax self certification from each customer of a financial institution. I will provide insight about five topics: The Panama Papers FATCA and its related…

Treasury recently released its 2015 Transfer Pricing Advance Pricing Agreements Report to Congress, the seventeenth report since the initial 1999 report.  Each year, the Treasury APA Report describes the annual experience, structure, and activities of the APMA Program.  Treasury also formally released the much discussed new audit/examination protocols that will become effective 1 May 2016. …

What do these two things have in common?  Dr. Andrew P. Morriss, Dean & Anthony G. Buzbee Dean’s Endowed Chair, Texas A&M School of Law explains In 1998, seven US heavy-duty diesel engine (HDDE) manufacturers agreed to pay USD83m to settle a suit by the US Environmental Protection Agency (EPA) contending that the HDDE manufacturers had used clever…

After a decade, the Treasury Department issued a new U.S. Model Income Tax Convention (the “2016 Model”), which is the baseline text the Treasury Department uses when it negotiates tax treaties (last updated in 2006). The 2016 Model includes a number of new provisions intended to more effectively implement the Treasury Department’s longstanding policy that…

MNC profit shifting has received major attention over the past few years. Total earnings stockpiled overseas are now reported to be in excess of $2 trillion. One of the authors published a technical tax article in Tax Notes on July 13, 2015, demonstrating that foreign subsidiaries of many MNCs are highly vulnerable to IRS attack using an…

The IRS issued Notice 16-08 announcing that it will extend timelines or modify four elements of FATCA –  (1) modify the date for submitting to the IRS the preexisting account certifications required of certain foreign financial institutions (FFIs); (2) specify the period and date for submitting to the IRS the periodic certification of compliance for a registered deemed…

On January 15, 2016, in a joint (bi-partisan) letter of Senate Finance Committee Republicans and Democrats to US Treasury, one that will certainly be of interest to our friends at Wolters Kluwer (a Netherlands parent multinational enterprise), the Senate Finance Committee members encouraged Treasury to use a tit-for-tat strategy against the EU Commission.  The letter stated that…