Chair: Jana S. Lessne, KPMG LLP, Washington, DC
A “Quick Dip” in the Water – A Summary of Recent Transfer Pricing Issues.
This program will provide a “refreshing dip” into the latest and most significant transfer pricing issues. We will dive into the OECD’s recent proposal for a Unified Approach to the tax challenges of digitalization, including the proposed new tax nexus rule for in-scope taxpayers, revised profit allocation rules, and pending key questions. We will then splash around in the final and proposed BEAT regulations, focusing on issues such as non-recognition transactions that may give rise to base erosion payments, the lack of an exception for payments to foreign entities that are subject to GILTI and/or Subpart F, and additional clarification on whether payments can be netted against one another to reduce base erosion payments. We will next take a couple of laps through the recently released functional cost diagnostic model or “FCDM”, including some observations on how this model has been used in actual APA negotiations. Lastly, we will catch a few rays, shedding some light on recent transfer pricing litigation, discussing recent developments in major cases such as Amazon, Altera, Medtronic, and other significant cases.
Moderator: Heather Gorman, EY, New York, NY
Panelists: Christopher J. Bello, Branch Chief, Branch 6, IRS Office of Associate Chief Counsel (International), Washington, DC (Invited); Professor William Byrnes, Texas A&M University School of Law, Fort Worth, TX; Professor Mindy Herzfeld, University of Florida Levin College of Law, Gainesville, FL; Professor Steve Johnson, Florida State University, Tallahassee, FL; Donna McComber, Baker & McKenzie Consulting LLC, Washington, DC; Robert Stack, Deloitte Tax LLP, Washington, DC