Tax & Accounting Blog

Why Did the Appeals Court Vacate the Medtronic Decision?

Why Did the Appeals Court Vacate the Medtronic Decision?

The Eight Circuit Court of Appeals vacated the June 9, 2016 trial court decision in Medtronic v. Comr. remanding this intercompany litigation “for further consideration in light of the views set forth in this opinion.” The Appeals Court was critical of the use of the Comparable Uncontrolled Transaction (CUT) approach noting several comparability differences between … Read More

CJEU Denies the Hamamatsu Photonics Retroactive Transfer Pricing Adjustment

CJEU Denies the Hamamatsu Photonics Retroactive Transfer Pricing Adjustment

Co-written by J. Harold McClure and Yanan Li Hamamatsu Photonics is a Japanese manufacturer of various optical devices, which are sold in Europe by Hamamatsu Photonics Deutschland GmbH (HPD). HPD obtained an Advance Pricing Agreement (APA) with the German and Japanese tax authorities that targeted an operating margin. On December 20, 2017, the Court … Read More

Determine Whether Your Intercompany Interest Rates Are Arm’s Length As You Comply With Section 163(n)

Determine Whether Your Intercompany Interest Rates Are Arm’s Length As You Comply With Section 163(n)

The Tax Cuts and Jobs Act includes some key impacts to transfer pricing, including the limitations on interest expenses imposed by section 163(n). BEPS Action 4 proposed two types of limitations on intercompany interest deductions: limits to intercompany debt where an affiliate’s debt to asset ratio mirrors the overall third party debt to asset ratio … Read More

Greece Implements EU Rules on Exchange of Country-by-Country Reports

Greece Implements EU Rules on Exchange of Country-by-Country Reports

On August 1, 2017, Greece published Law No. 4484 (the “Law”) in the Government newspaper, The Hellenic Democracy. The Law implements EU Directive 2016/881 (amending Directive 2011/16, which was previously amended by Directives 2014/107 and 2015/2376) on the mandatory automatic exchange of tax information (e.g., country-by-country (CbC) reports) into domestic legislation. See Read More

U.S. Treasury and Internal Revenue Service Delay Application of Documentation Regulations under Section 385

U.S. Treasury and Internal Revenue Service Delay Application of Documentation Regulations under Section 385

U.S. Internal Revenue Code (IRC) section 385 authorizes the Secretary of the Treasury to prescribe rules to determine whether an interest in a corporation is treated for purposes of the IRC as stock or indebtedness (or as in part stock and in part indebtedness) by providing factors to be taken into account with respect … Read More

Poland Issues Draft Amendment on Public Disclosure of Country-by-Country Reporting Information

Poland Issues Draft Amendment on Public Disclosure of Country-by-Country Reporting Information

On June 26, 2017, Poland issued a new amendment (new article 27b) to the Corporate Income Tax Act (CITA), which would require public disclosure of tax information for large taxpayers. The information disclosed would include the taxpayer’s name and tax identification number; relevant tax year; revenue; incurred expenses; earned income or loss; and … Read More