Advanced International Taxation Agenda

Subpart F imposes numerous rules that impose US taxation on US shareholders of CFCs. This session addresses planning opportunities and traps for the unwary, earnings and profits limitations, and the use of various exceptions, including the same-country exception, the look-through rule for certain other payments between related CFCs, the active rent and royalty exception, and the high-tax exception. The discussion also addresses rules applicable to foreign base company sales and services income. The session covers the addition of “GILTI” rules pursuant to which US shareholders of CFCs are taxable on a far broader class of income than under the older Subpart F rules, including the definition of GILTI, the scope of the high-taxed exception, the ability to offset GILTI tax with foreign tax credits, expense apportionment, application of the GILTI rules to partners of partnerships, and current regulatory guidance.

• Joseph M. Calianno, JD, LLM, MBA, CPA, Managing Director; National Tax Practice, Andersen Tax, Washington, DC
• Colleen O'Neill, Esq., CPA, Partner, EY Americas Director of International Tax and Transaction Services (ITTS), National Tax Department, Washington, D.C.
• Brandon Svetcov, Esq., Senior Manager, International Tax Services, EY, New York, NY

A principal focus of the Tax Cuts and Jobs Act was reforming the taxation of US based multinationals. Unfortunately, the impact of that reform on individuals who own foreign corporations either directly or through pass-through entities, such as partnerships and S corporations, appears not to have been well thought out. This panel addresses the taxation of such individuals, the problems that they face under the TCJA, and the steps that they can take to mitigate these apparent unintended consequences of tax reform.

• Thomas M. Giordano-Lascari, Esq., Partner, Karlin & Peebles, Los Angeles, CA
• Michael J.A. Karlin, Esq., Partner, Karlin & Peebles, Los Angeles, CA

Among the topics covered in this session are the US tax considerations for taxable and tax- free stock acquisitions of foreign companies, CFC issues, tax-free acquisitions of US companies, planning for the use of holding companies, inversion transactions, debt-equity regulations, use of hybrid instruments, OECD BEPS issues, and recent developments. The session also includes planning in light of tax law changes from the TCJA, including the base erosion anti-abuse tax (BEAT) and the anti-hybrid deduction limitations.

• William S. Dixon, Esq., Managing Director, Mergers and Acquisitions, Citigroup Global Markets, New York, NY
• Sam K. Kaywood, Esq., Partner, Alston & Bird, Atlanta, GA
• William B. Sherman, Esq., Partner, Holland & Knight, Fort Lauderdale, FL

With over six months having elapsed after their promulgation, this session dives into the final foreign tax credit regulations, exploring some of the key provisions and issues including what constitutes a creditable foreign income tax and how to allocate and apportion foreign tax to different "baskets." The session covers, among other things, applying and navigating the newly renamed "attribution" and "cost recovery" requirements and the treaty coordination rules for foreign tax credit creditability determinations, as well as the rules for allocating and apportioning foreign tax applicable to disregarded distributions, foreign law distributions and dispositions.

• Ninee Dewar, Principal, International Tax Services, PWC, Washington, DC
• Mira Pivnyuk, Principal, International Tax Services, PWC, New York, NY

This session addresses the definition of US real property interest; tax rules applicable to foreign persons disposing of US real property interests; special rules applicable to investments through real estate investment trusts; special exceptions including for interests in publicly traded companies and domestically controlled real estate investment trusts, as well as special exemptions for qualified pension investors and foreign sovereign investors; and treaty and other withholding tax exemptions for payments of interest to foreign investors.

• Alan I. Appel, Esq., Professor of Law, New York Law School, New York, NY
• Heather Ripley, Esq., Partner, Alston & Bird, New York, NY
• Sean Tevel, Esq., Partner, Holland & Knight, Miami, FL

This session focuses on the application of numerous international tax rules where activities are conducted, or assets are held, through partnerships. In the case of “outbound” structures, the discussion addresses the definition of CFC, various types of Subpart F income, and GILTI, as well as investments in PFICs. In the case of “inbound” structures, the discussion includes a discussion of hybrid entities and tax and withholding rules applicable to dispositions of interests in partnerships that conduct a trade or business in the United States.

• Kimberly Blanchard, Esq., Partner, Weil, Gotshal & Manges, New York, NY

This session addresses issues relating to investments by foreign persons in U.S. debt, including U.S. trade or business status, the safe harbors for certain investing and trading activities, “season and sell” techniques, and the use of income tax treaties including “bring your own treaty” funds.

• Jason Schwartz, Esq., Partner Fried Frank, Washington, DC
• Matthew Stevens, Esq., Principal, EY, Washington, DC