Although over 100 countries have signed the Multilateral Instrument, courts around the world have diverged in their application of the Principal Purpose Test, says Christos A. Theophilou of STI Taxand.

As Global Capability Centres grow in India, navigating through the right setup strategy (direct ownership or Built Operate Transfer) and understanding Indian tax implications is crucial for an MNE’s business structuring and predictability, say Khaitan & Co. practitioners.

The IRS has staked out its position on §246(b) disallowing some of a taxpayer’s FDII and GILTI deductions in GLAM 2024-002, but the statute is poorly drafted and courts will need to weigh in to resolve open issues, say Baker McKenzie practitioners.

Differing approaches to financial segmentation between taxpayers and governments may cause wildly different Amount B returns, or a different conclusion on being in-scope at all, so documentation of reasonable allocation standards is key to avoiding government rebuttals, say Baker McKenzie practitioners.

The adoption of anti-treaty shopping measures like the PPT in Latin American jurisdictions complicates the analysis of whether treaty benefits will continue to be available for holding companies, and the scope of protection for a grandfathered holding structure remains unclear, say KPMG practitioners.

As the IRS has seen more success in transfer pricing enforcement cases, taxpayers should re-evaluate their current transfer pricing documentation and defense strategy and determine whether a proactive approach through the APA or ICAP program could reduce its global transfer pricing exposure, says a Grant Thornton practitioner.

Dive into the new IRS regulations affecting retirement plan participants and beneficiaries with Kathryn J. Kennedy, former professor of law at the University of Illinois, for this second part of a two-part article series.

Dive into the new IRS regulations affecting retirement plan participants and beneficiaries with Kathryn J. Kennedy, former professor of law at the University of Illinois, for this first part of a two-part article series.

Parties to transactions in which tax gross-ups are contemplated should pay close attention when negotiating the terms of tax gross-up provisions — similar to how they manage other terms affecting deal economics.

The U.S. Supreme Court’s June 6, 2024 determination in Connelly v. United States, that a corporation’s life insurance policy held for redemption of a deceased shareholder’s stock increases its fair market value, will significantly affect many buy-sell agreements, many of which utilize life and disability insurance as the ideal funding mechanism for payment of the purchase price upon death, disability, or retirement.

Where a Kansas statute said acquisition price should be one of several determinants of the fair market value of replacement realty, the legislature earlier this year passed an amendment saying such price shouldn’t be considered at all.

Taxpayers generating, selling, and using federal renewable energy credits should beware of potential state tax liability if a state doesn’t conform to federal income exclusions, warn KPMG’s Daniel De Jong and Jasmine Desai.