Chairmen:
Ramon Camacho, WTAS, McLean, VA
J. Brian Davis, Morgan Lewis & Bockius, Washington D.C.
Monday, December 8
7:30 am Registration and Continental Breakfast
8:30 am Chairman Introduction and Overview
8:45 am Key Principles of International Taxation
- Overview of Key International Topics
- Foreign Tax credit Limitation Formula, How it works
J. Brian Davis, Morgan Lewis & Bockius, Washington D.C.
9:15 am Understanding the U.S. Rules for Sourcing Income
- Identify foreign source income and taxes – dividends, royalties and interest – application of the 80/20 rule
- Characterize and source income from intangibles
- Source gains from the sale of stock and treatment of foreign losses
Kevin Cunningham, KPMG LLP, Washington D.C.
10:15 am Working with the Expense Apportionment Rules
- Strategies for allocating and apportioning expenses
- Understand the special apportionment rules for interest and research expenses
- Apply the apportionment rules to general expense items
- Prepare expense apportionment work papers
Kevin Cunningham, KPMG LLP, Washington D.C.
11:15 am Break for Refreshments
11:30 am Review of the Foreign Tax Credit Calculation
- Determine whether a company should deduct or credit direct foreign tax payments – procedural issues
- Report adjustments to foreign taxes claimed as a credit
- Assemble foreign tax data for preparing Form 1118
J. Brian Davis, Morgan Lewis & Bockius, Washington D.C.
12:30 pm Lunch
1:30 pm Claiming Indirect Foreign Tax Credit
- Compute the Sec. 78 gross-up attributable to actual or deemed foreign source dividend income
- Understand the separate basket FTCL for overall, passive and 10-50 income
- Apply of the foreign tax credit “look-through” rules for earnings from CFCs – interrelationship with the Subpart F rules
- Obtain indirect FTC benefits on the sale of stock in a CFC – limitations on FTC benefits for newly-acquired CFCs
J. Brian Davis, Morgan Lewis & Bockius, Washington D.C.
2:30 pm Treaties & Permanent Establishment
- International Tax Treaty Construction
- Use of Tax Treaties in Planning
- P.E. or no P.E. – that is the question
- The limitation of benefit provisions
- Treaties in the check-the-box environment
- Section 894(c)
Kimberly Majure, Miller & Chevalier, Washington D.C.
3:30 pm Break for Refreshments
3:45 pm Computing E&P for U.S. Tax Reporting and Other Purposes
- Importance of earnings and profits in U.S. tax planning for foreign operations: reporting, foreign tax credit,
Subpart F, PFIC, etc. - Pooling post-86 E&P and ordering of distributions for indirect credits
- Determine the functional currency – translation issues
- Make accounting and tax elections for U.S. GAAP
Robert Saltzman, PricewaterhouseCoopers LLP, Washington D.C.
4:45 pm Summary – Q&A session
5:00 pm Seminar adjourns for the day
Tuesday, December 9
8:00 am Continental Breakfast
8:30 am U.S. Tax Aspects of Organizing a Foreign Corporation
- Understand how Sec. 367 operates to tax the incorporation of a foreign entity – what constitutes a U.S. shareholder?
- U.S. tax treatment of transfers of tangible and intangible assets to a foreign corporation
- Implement a gain recognition agreement (GRA) – IRS filing and reporting requirements - procedural aspects
- Special issues involving branch loss recapture and dual consolidated losses
Joseph Calianno, Grant Thornton LLP, Washington D.C.
9:30 am Break for Refreshments
9:45 am How the U.S. Subpart F Rules Operate
- Understand the Subpart F “control” requirements – de facto v. de jure
- How Subpart F distributions are taxed in the United States – treatment of previously-taxed income (PTI)
- Work with the IRS regulations to determine tainted foreign base company income and foreign personal
holding company income - Recharacterize gain from the sale of CFC stock under Sec. 1248
Bart Bassett, Morgan Lewis & Bockius LLP, Palo Alto, CA
11:15 am Complying with the IRS Transfer Pricing Regulations
- Choose the Best Method for intercompany sales and licensing activities
- Prepare and update a Transfer Pricing Study for a U.S. company with operations overseas
- The role of the economist in transfer pricing
- How the IRS conducts a transfer pricing audit and how to prepare for the audit
David Bowen Esq, Grant Thronton LLP, Washington D.C.
12:15 pm Lunch
1:00 pm Understanding the U.S. Tax Rules for Foreign Exchange
- Gains/Losses
- Select the functional currency for a foreign branch or subsidiary
- Determine the amount, character and source of foreign exchange gain or loss under Sec. 988
- Form 8858
- When foreign exchange gain is realized and recognized – transaction v. translation gains (losses)
Elizabeth Hale, Ernst & Young LLP, Washington D.C.
2:15 pm Questions & Answers
2:45 pm Seminar Concludes