Alliance for Tax, Legal, and Accounting Seminars
&
Structured Finance Institute

• Direct and indirect credits
• Foreign taxes subject to credit
• Payments which are not foreign taxes or which are not refunded are not creditable
• Compulsory loans to foreign governments, non-tax levies and payments of non-tax claims to foreign governments
• Refunds and rebates
• Deposits

Chris Croudace, Gilead Sciences, Inc., Foster City, CA

2. Understanding the U.S. Source Rules for Sourcing Income
A 31-page handout

• Relevance of income source
• Interest income
• Dividends
• Services income
• Rent and royalties from intangibles

Susan Liu, McDermott Will & Emery, Palo Alto, CA

3. Working with the Expense Apportionment Rules
A 35-page handout

• Why is allocation & apportionment important
• General allocation & apportionment rules
• Operative sections – statutory groupings
• Allocation & apportionment of interest expense
• Allocation & apportionment of R & E expenses

Rod Donnelly, McDermott Will & Emery, Palo Alto, CA

4. Overview of Foreign Tax Credit Limitations
A 51-page handout

• Overview of foreign tax credit limitation
• Separate foreign tax credit limitations based on character income
• CFC look through rules
• Allocation of taxes to categories of income
• Transition rules

Fred Chilton, McDermott Will & Emery, Palo Alto, CA

5. Foreign Tax Credit Adjustments
A 36-page handout

• FTC deduction or credit
• Foreign tax redeterminations
• New regulations
• FX translation rules
• Refunds and other adjustments
• When notice must be given

Richard Eigenbrode, Applied Materials, Santa Clara, CA

• Definition of a controlled foreign corporation & U.S. shareholder
• Who is taxed
• What is taxed
• Determination of subpart F inclusion
• Impact of subpart F inclusion

Ivan Morales, Baker & McKenzie, Palo Alto, CA

7. Effectively Connected Income and Permanent Establishments
An 18-page handout

• U.S. tax consequences
• Taxation of business income
• U.S. domestic law
• Effectively connected income
• Tax treaties

Nancy Hacker, Baker & McKenzie, Palo Alto, CA

8. International Aspects of Tax-Free Reorganizations
A 74-page handout

• What law governs international M & A
• Practical considerations
• Section 351
• Section 368
• Requirements common to all reorganization
• Step transaction doctrine

Sean King, Williams Mullen, Raleigh, NC

9. Transfer Pricing Issues
A 124-page handout

• Importance of transfer pricing
• General concepts
• Transfer pricing methods
• Tangible property
• Intangibles
• Creating documentation to meet your compliance needs

Margaret G. Nijhof, Baker & McKenzie, Palo Alto, CA
Sri Nagarajan, Baker & McKenzie, Palo Alto, CA

• Cost sharing arrangement
• Preliminary or contemporaneous transaction
• PCT – reference transaction
• PCT Payment vs. buy-ins
• The investor model
• Period adjustments

Fred Chilton, McDermott Will & Emery, Palo Alto, CA
Susan Liu, McDermott Will & Emery, Palo Alto, CA

2. Foreign Tax Credits: The Direct and Indirect Credit
A 72-page handout

• Basics
• What is a creditable foreign tax?
• How much foreign tax is creditable
• Who pays the foreign tax?
• §903 – “in lieu of foreign §905 (b) substantiation of foreign tax credits

Rod Donnelly, McDermott Will & Emery, Palo Alto, CA

3. International M&A
A 19-page handout

• What is international M&A?
• Internal vs. external transactions
• What jurisdiction’s rules apply
• Predominant analysis in the U.S.
• Subchapter C
• Section 367
• Predominant analysis in Europe

Sean M. King, Williams Mullen, Raleigh, NC

4. Section §954(c) - Foreign Personal Holding Company Income
A 38-page handout

• Subpart F review
• Categories of subpart F income
• Foreign personal holding company income
• Notice 2007-9
• Partnerships and subpart F
• Brown group regulations

Sean M. King, Williams Mullen, Raleigh, NC

• Deferral of U.S. tax
• Controlled foreign corporation
• Subpart F of the IRC
• General framework
• Who is a U.S. shareholder
• What is a CFC

Christina Harper, Morgan Lewis, San Francisco, CA

6. Sections 954 (d) – Foreign Base Company Income
A 95-page handout

• The relevant statutory provisions of subpart F
• The general FBCSI Rule § 954 (d) (1)
• The substantial activities test
• Relevant case law

Bart Bassett, Morgan Lewis, San Francisco, CA

7. Expense Allocation and Apportionment
A 40-page handout

• Overview of section 861 regulations
• Specific expense categories
• Interest expense
• R & D expenditures
• Stewardship
• Supportive

Oleg Katkov, Ernst & Young, San Jose, CA
Sadler Neldon, Ernst & Young

8. Domestic Production Deduction
A 46-page handout

• Overview of section 199
• W-2 wage limitation
• Taxable income limitation
• QPAI limitation
• Entity structures
• IRS Tier I initiative

Brian Joyce, Ernst & Young, San Jose, CA

9. Taxation of Foreign Currency Transactions & Hedging of Global Risks
A 37-page handout

• Timing of exchange gains or losses
• Character of exchange gains or losses
• Realization events
• Separate transaction principle
• Non-function currency borrowing
• Coordination with other sourcing rules

John MacArthur, Ernst & Young, San Jose, CA
Pamela Dickson, Ernst & Young, San Jose, CA