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Tax Planning for CFCs Under Subpart F Income & Essentials of Foreign Tax Credit Planning
Tax Planning for CFCs Under Subpart F Income & Essentials of Foreign Tax Credit Planning
October 16-17, 2017 - Regus, 1501 Broadway, New York, NY
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Tax Planning for CFCs Under Subpart F Income
This basic level seminar will explain tax strategies for controlled foreign corporations (CFCs) and tax planning under Subpart F income. Subpart F is to prevent CFCs from structuring transactions in a way that are designed to manipulate the inconsistencies between foreign and U.S. tax systems to inappropriately generate low or non-taxed income on which U.S. tax may be permanently deferred. There are several exceptions to the categories of Subpart F income to reduce taxes.
This seminar is for corporate tax executives, law firm and accounting firm professionals who advise clients on structuring cross border transactions and on international tax planning matters. There is no advance preparation or prerequisites for this group live seminar. Field of Study: Taxes. (We need to apply for NYS MCLE for this Course)
Earn Up to 8 CPE/CLE Credits
Monday, October 16, 2017
8:30 AM Registration and Continental Breakfast
9:00 AM Overview of Subpart F Provisions - Basic Mechanics
- Controlled Foreign Corporations (Section 958)
- Subpart F Income Definition and Exceptions (Section 952)
- Investments in U.S. Property (Section 956)
- Income Inclusion Requirements and Limitations (Section 951)
- Calculating the Foreign Tax Credit (Sections 901, 902 and 960)
- Previously Taxed Earnings (Section 959)
- Sale of a CFC (Section 1248)
- Affirmative Use of Subpart F
Lucas Giardelli, Associate, Mayer Brown LLP, New York, NY
10:30 AM Refreshment Break
10:45 AM Section 954(d) – Foreign Base Company Sales Income
- Foreign Personal Holding Company Income
- Same-country Exception
- Active Trade or Business Exception
- CFC look-through - Section 954(c)(6)
- Active Financing Income Exception
- Foreign Base Company Services Income
- Substantial assistance
John C. Crucs, Managing Director, KPMG LLP, Short Hills, NJ
12:15 PM Luncheon
1:00 PM Overview of Sections 954(c) and 954(e)
- Foreign Personal Holding Company Income (FPHCI) defined in § 954(c)
- Look-through Exception § 954(c)(6)
- Notice 2007-9 – Anti-Abuse Rules
- Foreign Base Company Services Income (FBCSI)
- Substantial Assistance Test Notice 2007-13
Trevor Blumenfeld, Tax Manager, KPMG LLP, New York, NY
2:15 PM Refreshment Break
2:30 PM Computing E&P and Section 1248
- Calculation of E&P
- 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)
- Application of §367 to §304 Transactions
- Final Section 1248 Regulations
Karen N. Ganesh, Senior Manager, Ernst & Young LLP, New York, NY
Chi Fung Yee, Senior Manager, Ernst & Young LLP, New York, NY
4:00 PM Reporting Issues for Controlled Foreign Corporations and Disregarded Entities
- Reporting Issues for Controlled Foreign Corporations (CFCs)
- Accounting method changes affecting Earnings & Profits
- Final GRA compliance regulations
- Updates concerning IRS Form 5471
- Recent developments in certain areas of the IRS code and regulations with regard to income tax compliance
- Creditable foreign tax expenditures §1.704-1T
- Foreign tax credit – credit vs. deduction
5:00 PM Seminar Concludes
Essentials of Foreign Tax Credit Planning
The foreign tax credit intends to reduce the double tax burden that would otherwise arise when foreign source income is taxed by both the United States and the foreign country from which the income is derived. Generally, only income taxes paid or accrued to a foreign country or a U.S. possession (also referred to as a U.S. territory), or taxes paid or accrued to a foreign country or U.S. possession in lieu of an income tax, will qualify for the foreign tax credit. This seminar will help you understand the mechanics of foreign tax credits, qualifications and limitations on credits, computing foreign/domestic losses and recent legislative changes. Download Brochure
This basic level seminar is for corporate tax executives, law firm and accounting firm professionals who advise clients on structuring cross border transactions and on international tax planning matters. There is no advance preparation or prerequisites for this group live seminar. Field of Study: Taxes. (We need to apply for NYS MCLE for this Course)
Earn Up to 7.5 CPE/CLE Credits
Tuesday, October 17, 2017
8:30 AM Registration and Continental Breakfast
9:00 AM Overview of the Rules Affecting Foreign Tax Credits and Understanding the Foreign Tax Credit Mechanics: Sections 901, 902, 903 & 960
- Creditability of Foreign Income Taxes
- Foreign Tax Credit Baskets and Limitation Calculation
- Indirect Credits
- Related Party Look-Through Rules
- Foreign Tax Redeterminations
Gabe Taubenfeld, Senior Manager, Ernst & Young LLP, New York, NY
Isaiah Hunter, Senior Manager, Ernst & Young LLP, New York, NY
10:30 AM Refreshment Break
10:45 AM The Foreign Tax Credit Limitation - Section 904 and Look-Through Rules under Section 904(d) (3) and (4)
- Determine creditable foreign income taxes
- Refresher on Sourcing
- Calculate lesser of creditable foreign income taxes or FTC limitation
- For post-2006 years, taxpayers must compute a separate limitation for only two “baskets” of income
- Sec. 904(a) FTC limitation
- General Look-Through of Section 904(d)(3)
- Section 78 Gross-up, Section 956 Inclusions, and PFIC inclusions
- Look-Through Applied to Non-Controlled Section 902 Corporations:
- Section 904(d)(4) and Regulation
Matthew Jenner, Associate, Baker & McKenzie LLP, Washington, DC
12:30 PM Networking Luncheon
1:15 PM Impact of Overall Foreign Losses, Separate Limitation Losses and Overall Domestic Losses on the Foreign Tax Credit Limitation
- Background of loss provisions
- Loss computation steps
- Overall foreign loss (“OFL”) recapture
- Separate limitation loss (“SLL”) recapture
- Overall domestic loss (“ODL”) recapture
- Case study
Andrew Guberman, Senior Manager, Deloitte Tax LLP, New York, NY
2:45 PM Refreshment Break
3:00 PM Recent Legislative Developments
- Regulatory Update
- International Update
Section 909 Final Regulations
Section 901(m) – Notice 2014-44
Trumps Tax Plan
- Legislative Update
Sashka Koleva, Senior Manager, KPMG LLP, New York, NY
Caren Shein, Managing Director, KPMG LLP, Washington, DC
4:30 PM Seminar Concludes
Regus Meeting Room, 1501 Broadway, 12th Floor, Manhattan, New York, 10036-5601, United States. Phone: 1 646 571 2000
For Hotel Reservations please call us at 877-500-1510. We have a block of rooms at the Crowne Plaza.
Trevor Blumenfeld is a Tax Manager in KPMG’s International Tax Group, where he provides services to U.S and foreign, multi-national companies in regards to U.S. international taxation issues. Such issues often involve U.S. tax deferral (e.g., subpart F income calculations), cash repatriation planning, cross border mergers and acquisitions, foreign currency exchange calculations, tax treaty analysis and U.S. international tax filing obligations. Trevor joined KPMG in 2011. Prior to that, he practiced as an auditor for another accounting firm. Trevor earned his JD at St. John’s University School of Law School and his LLM in Taxation from New York University.
John Crucs is a senior manager in the international corporate services group at KPMG LLP where he provides tax consulting services to a broad range of multinational clients. He has over fourteen years of tax experience based out of Boston, New York, and New Jersey. His practice involves advising clients on structuring and managing their global operations to reduce their worldwide effective tax rates. In addition to global tax planning, John has experience with other tax matters including preparing and auditing U.S. corporate tax provisions, preparing and reviewing U.S. corporate international tax compliance, and responding to audit inquiries by U.S. and foreign taxing authorities. Prior to joining KPMG, John was a tax director at the global luxury goods company LVMH, where he was responsible for U.S. tax planning and operations. Prior to that, he served as a senior tax manager at Deloitte and a senior associate at Andersen. John received his B.A. from The College of the Holy Cross in 1995 and his J.D. from Boston College Law School in 1998. He is a member of the tax section of the New York Bar Association. John earned his JD from Boston College Law School; his BA from The College of the Holy Cross and is a member of the New York Bar Association, Tax Section.
Karen N. Ganesh is an experienced senior manager in the International Tax quantitative Service practice. Karen is based in New York and has been with Ernst & Young LLP for over 10 years. Her experience within international tax consists of tax compliance including Form 5471, 8865, 8858, and 8621, Subpart F analysis, Earnings & Profit studies, Foreign Tax Credit, tax reporting/disclosure for cross-border transactions under IRC Sec. 301, 302, 304, 332, 351, 367 etc., tax basis balance sheets, ASC 740, and FIN 48 analysis. Karen primary works with large private equity and media and entertainment clients. She graduated from Baruch College with BBA in Accountancy and MBA in Finance and Taxation.
Lucas Giardelli is an associate in the Tax Transactions & Consulting practice at Mayer Brown in New York. Lucas concentrates his practice on international tax planning and corporate tax matters, advising clients on the tax aspects of cross-border restructurings, mergers, acquisitions, financing arrangements and other transactions. Prior to joining Mayer Brown, Lucas practiced Tax law at a leading law firm in Argentina. Lucas earned an LLM from Harvard Law School and an LLM in Tax Law from Austral University (Argentina), where he also obtained his Law Degree (Gold Medal). Lucas is admitted to practice in New York and Argentina.
Andrew Guberman has more than eight years of experience in public accounting. Andrew has gained experience in serving both international and middle-market companies. He has served as an international tax specialist on numerous clients and helped on attribution studies and provision calculations. He has also gained extensive knowledge in Visual Basic for Applications (“VBA”), SQL, C#, and other programming languages. Coupling his technology and tax technical knowledge has helped Andrew create tax and efficiency models to assist in automation surrounding certain tasks of tax calculations/scenario planning for acquisitions, dispositions, attribution studies, and provision calculations. Andrew holds a bachelor’s degree in accounting from the Rutgers College Business School.
Isaiah Hunter is a member of Ernst & Young LLP’s International Tax Services practice. He advises multinational corporations and private equity investors on a variety of international tax matters related to cross-border transactions and general international tax planning. In particular, he has assisted clients with tax-effective financing structures, Subpart F planning, tax treaty analysis, PFIC questions, and inversion issues. Isaiah received a B.A. in Economics and Political Science from American University and a J.D. from New York University School of Law.
Matthew Jenner is an associate in the Tax Practice Group of the Washington, DC office. He advises multinational companies on federal tax issues related to cross-border transactions. He also represents clients in domestic and international tax disputes. Mr. Jenner focuses his practice on matters relating to the US federal income taxation of corporations, with an emphasis on international tax planning. He advises multinational companies on domestic and international reorganizations and acquisitions, and foreign tax credit planning. He advised clients on post-acquisition integration planning and implementation; on efficient tax structure for divestiture of one of its major businesses; on tax-efficient cash repatriation strategies and represented clients in cross-border mergers and acquisitions. He earned his J.D. cum laude from Indiana University - Maurer School of Law and his B.A. Economics and Italian cum laude, from the University of Notre Dame.
Sashka Koleva is a senior manager in KPMG’s Tax Controversy Services practice. Sashka advises clients on all aspects of their federal tax controversies, from examination through post-Appeals mediation, with an emphasis on domestic and international tax issues in the financial services industry. Prior to joining KPMG, Sashka was an attorney with the IRS Office of Chief Counsel, Large Business & International, advising IRS exam teams and the Office of Appeals on both domestic and international tax issues arising from the audits of large financial institutions, hedge funds, and insurance companies, such as investment tax credits, taxation of financial instruments, deferral and foreign tax credit planning, U.S. tax treaty issues, and Chapter 3 withholding. During her tenure with the IRS Office of Chief Counsel, she served as counsel to the Issue Management Team on Foreign Tax Credit Generators and was a member of the Steering Committee of the Foreign Tax Credit International Practice Network. She also served as U.S. Counsel to the Joint International Tax Shelter Information Centre (“JITSIC”). Sashka is admitted to practice in New York. She earned her LL.M. in taxation from New York University School of Law and her J.D. from The University of Texas at Austin.
Caren S. Shein is a Managing Director at KPMG LLP’s National Tax Office in Washington, DC. Ms. Shein advises clients on outbound and inbound international tax planning and compliance issues, including foreign tax credit, subpart F, expense allocation, and permanent establishment. Her particular area of expertise is the foreign tax credit, and she regularly writes, speaks and teaches in this area. Caren is the author or co-author of numerous articles, including“Uncovering the Covered Asset Acquisition Rules,” The Tax Executive (Sept.-Oct. 2010), “Emergency Economic Stabilization Act of 2008 – Throwing a Rope to the Ailing Financial Industry Tightens the Noose on Big Oil,” Tax Management International Journal (February 2009), “Temporary Regulations Deny Foreign Tax Credits for Amounts Paid Pursuant to “Structured Passive Investment Arrangements”, Tax Management International Journal (October 2008), “New Temporary Regulations Under Section 905(c): A Big Improvement but Puzzling Issues Still Remain,” Tax Management Journal (May 2008), “The IRS Proposes a New Approach to Determine the Technical Taxpayer – Will it Work?,” Journal of Taxation of Global Transactions (Fall 2006), “Section 905(c) – The Missing Piece of the Foreign Tax Credit Puzzle”, Tax Management International Journal (January 2002), and “A Fresh View of Overall Foreign Losses and Consolidated Returns”, Tax Management International Journal (May 1999). Prior to joining KPMG, Ms. Shein was an attorney advisor at the Internal Revenue Service, Office of Associate Chief Counsel (International). There she worked on rulings, regulations and litigation, primarily relating to foreign tax credits. Ms. Shein began her career as a law clerk to the Honorable B. John Williams, Jr., of the United States Tax Court.
Gabriel Taubenfeld is a Senior Manager in Ernst & Young LLP’s International Tax Services practice. He advises multinational corporations and private equity investors on a variety of international tax matters related to cross-border transactions and general international tax planning. Gabe has advised on numerous cross-border M&A transactions, financing and reorganizations, ranging in value between $10m and $23b across a broad range of industries. In this regard he is experienced in transaction structuring, tax modeling, due diligence and pre and post-transaction restructuring. Gabe also regularly assists both US and foreign multinational clients with all aspects of US international tax planning and compliance. In particular, he has assisted clients with foreign tax credit planning, tax-effective cash repatriation planning, Subpart F planning, tax treaty issues, US trade or business issues and effectively connected income. Gabe received a B.A. in Accounting from the City University of New York at Queens College, a J.D. from Fordham University School of Law and an LL.M. in Taxation from New York University School of Law. He is a member of the Tax Section of the American Bar Association and is a certified public accountant in New York.
Chi Fung Yee is a member of the International Tax Services practice of Ernst & Young LLP based in New York, NY. He has over ten years of international tax experience. In his current role he provides services to US multinationals on all aspects of US international taxation including planning and tax compliance. Chi received his BBA in Accountancy and Master’s degree in Taxation from Baruch College.