Chairmen:
Murray Gordon, Ernst & Young LLP, New York, NY
Andrew Szymulanski, Baker & McKenzie LLP, Chicago, IL
Tuesday – July 29, 2008
7:30 AM Registration and Continental Breakfast
9:00 AM Chairperson's Introduction and Overview
9:15 AM Overview of Subpart F Provisions - Basic Mechanics
- What is a Controlled Foreign Corporation?
- Effect of voting agreements, etc. on CFC determination
- Basic mechanics of subpart F
- Overview of subpart F income definition
- Exceptions to subpart F income definition, including the E&P limitation, de minimis exception, full inclusion rule, and high-tax exception
- Calculating the Section 960 Credit for Deemed Inclusions
- Introduction to previously taxed income accounts
Murray Gordon, Ernst & Young LLP, New York, NY
10:30 AM Refreshment Break
10:45 AM Overview of Sections 954(c) and 954(e)
- Detailed review of foreign personal holding company income definition.
- Calculating foreign base company services income and application of the substantial assistance rules
- Review of the foreign base company service rules.
- Consideration of the application of foreign base company services rules to check-the-box subsidiaries
- Developments Resulting from the American Job Creation Act
Dilshod Sharapov, Deloitte Tax LLP, Chicago, IL
12:00 PM Lunch
1:00 PM Section 954(d) – Foreign Base Company Sales Income
- Review of the foreign base company sales income rules of § 954(d)
- Consideration of the IRS’s recent attack on the “its” defense.
- Review of the application of the Branch Rule of § 954(d)(2)
- Consider the development of the IRS’s response to contract manufacturing structures
- Detailed review and analysis of the newly proposed manufacturing regulations.
Murray Gordon, Ernst & Young LLP, New York, NY
2:00 PM Special Rules Under Subpart F for Active Finance Income
- Overview of section 954(h)'s Active Finance Exception
- Application of the Active Finance Exception outside the traditional banking context.
- Overview of the Export Finance Exception
- Hurdles and potential advantages of forming off-shore active finance subsidiaries
- Other special rules under Subpart F for active finance income
Jason Bazar, Mayer Brown LLP, New York, NY
3:00 PM Refreshment Break
3:15 PM Section 1248
- Overview of section 1248 and calculation of the section 1248 amount
- Foreign tax credit consequences of recognizing section 1248 amount, interaction with sections 338(g) and 338(h)(16), discussion of CCA 200103031
- Planning for dispositions of CFC stock
- Proposed check-the-box anti-abuse regulations
- Discussion of the so-called “check and sell” technique for sales of first-tier and lower-tier CFCs
Dominika Korytek, Baker & McKenzie LLP, Chicago, IL
4:30 PM Roundtable Discussion Concerning Practical Considerations of Structuring, Maintaining and Defending a Manufacturing Structure In the Context of the Newly Proposed Manufacturing Regulations
Robert J. Cunningham, Baker & McKenzie LLP, Chicago, IL
Jeffrey P. Maydew, Baker & McKenzie LLP, Chicago, IL
Thomas F. Quinn, PricewaterhouseCoopers, Chicago, IL
5:30 PM (Tentative *** Cocktail Reception Sponsored By Baker & McKenzie, Chicago, IL***)
Wednesday – July 30, 2008
8:00 AM Continental Breakfast
8:40 AM Chairperson's Review
9:00 AM Interaction of Subpart F and Subchapter K Provisions
- Using foreign partnerships v. corporations in joint venture planning
- The Tax Court and Eighth Circuit decisions in Brown Group v. Commissioner
- Discussion of final Brown Group regulations
- Application of Rev. Rul. 90-112, and the consequences of holding United States property through partnerships
- Developments Resulting from the American Job Creation Act
Andrew Szymulanski, Baker & McKenzie LLP, Chicago, IL
10:00 AM Sections 953 and 954(i): Insurance Income
- Section 953 and the definition of “Insurance Income”
- Consequences of making a section 953(d) election
- Overview of section 954(i)
- Advantages of forming a captive insurance company or a group captive company to insure company risks
- Recent developments in the IRS view of captives
Roy Sedore, Baker & McKenzie LLP, New York, NY
11:00 AM Refreshment Break
11:15 AM Reporting Issues for Disregarded Entities and Allocation of Deductions in Computing Subpart F Income
- Form 8858
- Potential increased audit risk for transactions between disregarded entities
- Calculating net foreign base company sales income
- Computation of CFC’s E&P for purposes of the E&P limitation
- Use of accumulated E&P deficits and E&P deficits of lower-tier CFCs to reduce subpart F income
Jacqueline Amatulli, Baker & McKenzie LLP, Chicago, IL
12:15 PM Lunch
1:15 PM Section 956 - CFC Investments in United States Property
- Overview of section 956 and mechanics of deemed income inclusion
- Co-ordination of section 956 inclusions and subpart F inclusions
- Definition of “United States Property”
- Application of Notice 88-108 and discussion of decision in Jacob’s Engineering
Elena Mossina, Baker & McKenzie LLP, Chicago, IL
2:15 PM Section 959 – Previously Taxed Income of a CFC
- Review of the PTI provisions of § 959
- Analysis of the foreign currency implications of PTI distributions
- Consideration of PTI planning techniques
Derek A. Burgess, Ernst & Young LLP, Grand Rapids, MI
3:15 PM Refreshment Break
3:30 PM Repatriating Low-Tax Earnings from a CFC
- Methodology for categorizing and analyzing repatriation techniques
- Discussion of alternatives to permanent repatriation of low-taxed income
- Review of field service advices involving permanent repatriation of low-tax earnings - FSA 200117019 and FSA 200031023 (Apr. 28, 2000).
4:30 PM Conference Concludes