ONESOURCE Transfer Pricing thomsonreuters.com

Source: Journal of International Taxation (WG&L)

The United States is moving toward joining more than 100 other countries in adopting International Financial Reporting Standards (IFRS), including the SEC's publication of a proposed "road map" for adoption. As the conversion process moves ahead, there will be a significant impact on corporate tax policies and procedures as well as accounting functions.

Source: Journal of International Taxation (WG&L)

Final Regulations (TD 9456, July 31, 2009; 74 Fed. Reg. 38830, August 4, 2009) provide guidance on controlled services transactions under Section 482 and the allocation of income from intangible property, in particular with respect to contributions by a controlled party to the value of intangible property owned by another controlled party.

In August 2006, the IRS and Treasury issued Temporary Regulations on services and intangible transactions (see Baker & McKenzie, "Intercompany Service and Intangible Transactions: Temporary Regulations Respond to Taxpayer Criticisms," 17 JOIT 15 (November 2006)).

Source: WG&L editorial staff

The Large and Mid-Size Business Division (LMSB) has issued its third directive on Section 965 foreign earnings repatriation, this time to provide guidance to field examiners on cases that involve both repatriation and a transfer pricing adjustment under Section 482 (LMSB-4-0409-017).

Background

Section 965 provides that a corporation that is a U.S. shareholder of a controlled foreign corporation (CFC) may elect, for one tax year, an 85% dividends received deduction (DRD) for qualifying cash dividends received from its CFCs.

Source: Tim Anson, Nardi Bress, Carl Dubert, Marty Collins, Tom Quinn, and Greg Lubkin

According to TAM 200907024, issued on November 10, 2008, the foreign portion of a taxpayer's global delivery business was fully attributable to identifiable intangible assets under Section 936(h)(3)(B) and, when transferred to a foreign affiliate, gave rise to a deemed royalty under Section 367(d). Six months later, the Obama Administration proposed legislation that would include workforce in place, goodwill, and going concern value as intangibles under Sections 367(d) and 482, which would prevent them from being transferred tax free from U.S. persons to foreign persons.