Tax & Accounting Blog

Eaton, ASAT, and Section 6038A: A Call for Transfer Pricing Documentation

Eaton, ASAT, and Section 6038A: A Call for Transfer Pricing Documentation

Eaton Corp. v. Commissioner is heating up. Not only has the IRS invalidated its APA, but now it is trying to exclude certain evidence from the trial over the transfer pricing. According to a BNA story: “The IRS is seeking to prevent Eaton Corp. from presenting key testimony related to its business operations at a … Read More

Valuing Gilead’s Intangibles in Light of the Altera Aftermath

Valuing Gilead’s Intangibles in Light of the Altera Aftermath

Taxpayers are free to structure their intercompany transactions as they wish if the intercompany pricing is consistent with the arm’s length standard. Any evaluation of a transfer pricing issue depends on what the fundamental question is. In my view, the IRS lost Altera because it was asking the wrong question. In this blog, we will … Read More

Taxologist Blog Series Part 5: Lay the Foundation for a Successful Implementation

Taxologist Blog Series Part 5: Lay the Foundation for a Successful Implementation

Were you able to catch up on our 7-part Taxologist blog series? If not, check out Part 1, Part 2, Part 3, and Part 4. 5. Product vs. Process Training When it comes to training, it’s important to be aware of “product training” versus “process training.” Typically, product training is a … Read More

Evaluating Intercompany Royalty Rates: Why Agree with the IRS Preferred Method?

Evaluating Intercompany Royalty Rates: Why Agree with the IRS Preferred Method?

Imagine a U.S. parent that licenses certain technology to a Canadian affiliate which generates significant profits. While this sounds like good news from a business perspective, the IRS habit of assuming that the royalty should represent all of these residual profits could cause double taxation problems. Interestingly, many economists and the latest from the OECD … Read More