CHAIRPERSONS:
Bart Bassett, Morgan Lewis & Bockius LLP, Palo Alto, CA
E. Daniel Leightman, Gardere Wynne Sewell LLP, Houston, TX
Sean King, Williams Mullen, Raleigh, NC
Wednesday, September 24, 2008
7:30 AM Registration & Continental Breakfast
8:45 AM Chairperson's Welcome and Introduction
9:00AM Acquisitions, Dispositions & Reorganizations Involving U.S. Shareholders in Foreign Corporations
- Sale of shares in a CFC-recharacterizing gain as ordinary income under Sec. 1248
- Making a Sec. 338 election for foreign asset acquisitions
- How the Sec. 367 rules operate to recognize gain on outbound transfers of stock or assets - understanding the scope of the new Sec. 367 regulations
- Filing a Gain Recognition Agreement (GRA) to defer gain on transfers of CFC stock
Sean King, Williams Mullen, Raleigh, NC
10:45 AM Refreshment Break
11:00 AM Source Income, Planning Issues and Utilizing the Source Rules to increase Foreign Source Income
- How the source rules operate for dividends and interest
- Understanding the new source rules for computer software - sales v. licensing income
- Sourcing income from sales of U.S. inventory property
- Tax planning strategies for maximizing foreign source income
Bart Bassett, Morgan Lewis & Bockius LLP, Palo Alto, CA
11:45 AM Luncheon
12:45 PM Intercompany Service Regulations
- Issues and opportunities with new Services Cost Method
- Stock-Based Compensation and service fees
- Coordination of services and intangibles rules
- Shareholder service activities and coordination with IRC section 861, and
- Strategies for managing intercompany service documentation
Bart Bassett, Morgan Lewis Bockius LLP, Palo Alto, CA
2:15 PM Refreshment Break
2:30 PM Recent Issues in Transfer Pricing Under Sec. 482
- How the final regulations under Sec. 482 operate - selecting the Best
- Method for your company's operations
- Applying the rules for CUP, resale price, cost plus or the comparable profit margin (CPM) method
- Using an economist to select comparables
- Recent U.S. audit issues, including penalties under Sec. 6662 and filing for a small taxpayer or regular Advanced Pricing Agreement (APA)
Mark Martin, Gardere Wynne Sewell LLP, Houston, TX
3:45 PM Refreshment Break
4:00 PM Tax Treaties and the Permanent Establishment
Bart Bassett, Morgan Lewis Bockius LLP, Palo Alto, CA
5:15 PM Questions & Answers
5:30 PM Meeting Adjourns
Thursday September 25, 2008
7:30 AM Continental Breakfast
8:30 AM Expense Allocation and Apportionment of Expense Strategies
- How expense apportionment affects the foreign tax credit limitation and earnings per share
- Minimizing the apportionment of interest to foreign income- avoiding the CFC interest
- Working with the latest research apportionment regulations - interrelationship with cost sharing plans
- Apportionment of losses, stewardship, state taxes and other general and administrative expenses
Darren Miles, Cooper Industries Inc, Houston, TX
9:45 AM Refreshment Break
10: 00 AM Creditability of Foreign Taxes
- When a foreign tax levy can be claimed as a foreign tax credit-tax on income v. tax on assets
Tim Fitzgibbon, Fenwick & West, Mountain View, CA
11:00 AM Direct & Indirect Foreign Tax Credit Issues
- Stock ownership requirements and allowable fact patterns
- Planning for effective and efficient foreign tax credit utilization FTC and E&P tracking issues
- Working with the post-86 pool rules for FTC purposes
- Effect of deficit carryovers and carrybacks
12:00 PM Luncheon
1:00 PM Managing the Foreign Tax Credit Limitation Formula
- Understanding how the FTC limitation is computed
- Applying the indirect foreign tax credit gross-up to actual or Subpart F dividends
- How the separate basket FTCL reduces foreign tax credit benefits
- Redetermination of foreign tax credit benefit for actual distributions of Subpart F amounts
2:00 PM Section 304
- Taxable reorganization under Section 304
- Section 304 Planning Opportunities
John Woodruff, Gardere Wynne Sewell LLP, Houston, TX
3:15 PM Refreshments
3:30 PM Subpart F Anti-Deferral Rules
- Definition of U.S. shareholder - vote or value stock ownership issues - how to decontrol a foreign company
- Understanding the latest regulations involving Subpart F foreign base company income - working with the branch rules for foreign sales and manufacturing activities
- Exceptions and limitations on application of the Subpart F rules - new regulations for hybrid branches
- Affirmative use of Subpart F - making loans to U.S. shareholders from first or lower-tier CFCs
- Treatment of Previously Taxed Income under Section 959
Ben Sparks, Gardere Wynne Sewell, Dallas, TX
5:00 PM Questions & Answers
5:15 PM Meeting Adjourned
Friday, September 26, 2008
8:30 AM Continental Breakfast
9:00 AM Foreign Currency Transaction and Translation Including the
Newly Revised 987 Regulations
- Identifying QBU's and functional currency
- Calculation of 987 Gain or Loss - Old Prop vs. New Prop Regs
E. Daniel Leightman, Gardere Wynne Sewell LLP, Houston, TX
10:15 AM Refreshments
10:45 AM Principles of Corporate Finance for Tax Planning Strategies
- Methods of Allocation Interest Expense
- Accelerated Tax Deduction
- Limited Debt Capacity
12:15 PM Questions & Answers
12:30 PM Seminar Concludes