With the action by Liberty Global in November of last year, we have the first challenge to the validity of the Temporary Regulations under section 245A. We discuss those regulations and some of the arguments we will see in that case.  Topics discussed: 1. The section 245A deduction, the “GILTI donut hole,” and what the Temporary Regulations do to address that “donut hole” 2. Liberty Global’s complaint 3. Assessment of Liberty Global’s arguments that the Temporary Regulations are...

Loren and Steve will discuss the tax proposals included in the American Jobs Plan, which are meant to fund large infrastructure investments the Biden administration plans to make. Topics addressed will include proposed modifications to the GILTI, BEAT, and FDII regimes, as well as new provisions like the minimum tax on book income and a carrot/stick approach to addressing U.S. multinationals’ onshoring and offshoring activities. ********* Questions? Contact us at [email protected]. tax...

In this episode, Loren and Steve speak with Mike Cragg from The Brattle Group about economics and transfer pricing valuations.  Over time, the modes of economic valuation for transfer pricing purposes have become predictable and sometimes rote. Are there other ways to skin the proverbial cat? On this episode, we discuss some possible novel approaches with Mike Cragg, an experienced economist and the Principal & Chairman at The Brattle Group. In particular, we’ll discuss the role that...

Facebook is embroiled in a transfer pricing dispute with the IRS in Tax Court. This week on tax break, Steve and Loren conclude their discussion of what's at issue in the case. Listen to part 1 of the discussion in Episode 14. Topics discussed: Basics of the dispute Whether aggregation of the three disputed royalties is reliable here Pricing the Platform Contribution Transaction royalty Challenge to validity of the -7T regulations Nature of the User Base and associated royalty Subsequent...

This week, Steve and Loren discuss the results of the joint Miller & Chevalier and National Foreign Trade Council 2021 Tax Policy Forecast Survey with Miller & Chevalier Tax Member Marc Gerson. View the survey here: https://bit.ly/taxpolicy2021  Topics discussed: Genesis of the survey Design of its questions Expectations for results Surprises in those results Other observations on the results Thanks to our guest, Marc Gerson:...

Facebook is embroiled in a transfer pricing dispute with the IRS in Tax Court. This week on tax break, Steve and Loren discuss what's at issue in the case. Topics discussed: Basics of the dispute Whether aggregation of the three disputed royalties is reliable here Pricing the Platform Contribution Transaction royalty Challenge to validity of the -7T regulations Nature of the User Base and associated royalty Subsequent legal changes and changes to structure ********* Questions? Contact us...

The January special election in Georgia shifted control of the Senate to the Democrats. What does this mean for the prospects and content of future tax legislation? Hosts Steve Dixon and Loren Ponds are joined by their colleagues Jorge Castro and Marc Gerson to discuss: Contents of the Consolidated Appropriations Act, 2021 New Composition of Finance and Ways & Means What Can Be Accomplished with Reconciliation? Possible Content of Reconciliation Vehicles Business Tax Proposals Thanks to...

This week on tax break, Steve and Loren are joined by Miller & Chevalier Tax Member Rocco Femia to discuss the recently proposed section 901 regulations’ net gain requirement and new jurisdictional nexus standard, as well as the implications of these modifications.Thanks to our guest, Rocco Femia: https://www.millerchevalier.com/professional/rocco-v-femia *********Questions? Contact us at [email protected] break is not intended and cannot be relied on as legal advice; the content...

In a crossover with the Tax Notes Talk podcast, tax break host and Miller & Chevalier Member Loren Ponds shares her journey from Georgetown University Law Center to the OECD to Capitol Hill, where she worked on the 2017 tax law, and what she learned along the way. Loren is interviewed by Nana Ama Sarfo, who recently profiled her in Tax Notes' For the Love of Tax series.  You can check out that profile here: http://bit.ly/PondsProfile *********Questions? Contact us...

On this episode of tax break, Loren and Steve are joined by Simon Webber, a managing director in the transfer pricing practice at Duff & Phelps, about the latest OECD initiatives and what they might mean for transfer-pricing valuation.We'll speak about the endeavor of transfer pricing valuation as it relates to worldwide effective-tax-rate management, how the last round of OECD initiatives (under BEPS) changed the valuation landscape, and what might happen to that landscape with the two...

In this episode of tax break, Steve and Loren are joined again by Miller & Chevalier tax Member Jorge Castro to discuss some of the business-specific tax proposals that have come from President-Elect Joe Biden. Jorge served on the Obama-Biden Transition Team in 2008 and provides perspective about how the incoming Biden administration is currently assessing these issues. We discuss significant general corporate changes, international tax changes, other domestic possibilities, and areas for...

In this episode of tax break, Steve and Loren discuss the final FDII regulations from July 2020 with Sharon Heck, Treasurer and Chief Tax Officer at Intel.They discuss several aspects of the business that have been affected by FDII, and policy discussion underscoring the importance of the provision now and going forward:Practical considerations (supply chain considerations, corollary to GILTI, impact to M&A transactions)Policy considerations (Biden tax proposals – Made in America, R&D...

This week, Steve and Loren discuss the final FDII regulations from July with Jeff Tebbs, International Tax Counsel at Lockheed Martin. They cover:Allocation of R&E expenses, which Treasury did not addressFinalized regulations treating 250(b) as operative under 861 allocation and apportionment rulesSales of general property that primarily contain digital contentHow final regulations relax documentation and substantiation requirements Thanks to our guest Jeff Tebbs for joining us:...

On this episode, hosts Loren Ponds and Steve Dixon discuss with our esteemed guest, Andy Howlett (Tax Member at Miller & Chevalier), some of the finer points of Section 199A. Section 199A is a newly enacted provision of the Tax Cuts and Jobs Act and represents Congress's attempt to harmonize the tax treatment of corporate and pass-through entities. We will explore the policy behind its enactment, some nuances of its operation, and potential pitfalls for the unwaryThanks to our guest Andy...

In this episode, Loren and Steve discuss the APA, what it means for Treasury Regulations, and the APA issues presented in the Altera case.The Supreme Court just denied Altera's petition for certiorari, which was unfortunate because it presented some important questions about how the APA applies to Treasury Regulations. Moreover, the Supreme Court's landmark DACA decision clarified some APA principles that would have been relevant to the issues in Altera. We'll discuss the APA and its...

In this episode of tax break, hosts Loren Ponds and Steve Dixon are joined by guest Kevin Kenworthy (Chair of Miller & Chevalier's Tax Department) to discuss the upshot of the district court's decision in Microsoft's transfer-pricing case as it pertains to claims of work-product protection and section 7525 in the context of transfer pricing and international tax planning.Microsoft lost its fight to protect tax and transfer pricing planning documents from government discovery in litigation...

In this episode of tax break, hosts Loren Ponds and Steve Dixon conclude their discussion of a couple of notable issues raised by the final and proposed base erosion and anti-avoidance tax (BEAT) regulations issued under section 59A at the end of last year. (The first part of this discussion can be heard in Episode 2.)*********Questions? Contact us at [email protected] break is not intended and cannot be relied on as legal advice; the content only reflects the thoughts and opinions of...

In this episode of tax break, hosts Loren Ponds and Steve Dixon discuss a couple of notable issues raised by the final and proposed base erosion and anti-avoidance tax (BEAT) regulations issued under section 59A at the end of last year.*********Questions? Contact us at [email protected] break is not intended and cannot be relied on as legal advice; the content only reflects the thoughts and opinions of its hosts.tax break is a podcast about tax law, brought to you by Miller &...

In the first episode of tax break, hosts Loren Ponds and Steve Dixon are joined by guest Jorge Castro (Member at Miller & Chevalier and former Counselor to the IRS Commissioner) to discuss the tax relief packages that Congress has already enacted and what to expect from forthcoming relief packages.TOPICS DISCUSSED:The prospects for tax legislation pre-pandemicThe four packages enacted thus farCARES Act business tax provisionsProspects for the inclusion of tax provisions in future relief...

tax break is a podcast about tax law, brought to you by Steve Dixon and Loren Ponds, tax lawyers at Miller & Chevalier. We’ll provide you with perspective on select tax issues that will go deeper than what the tax press covers, but not so deep that you’ll have to pull out your regulations or read treatises to follow along. We’re only going to select topics that we think are interesting – the shiny objects that catch our attention.Our first episode will be available very soon. Subscribe...