Section 951
Our International Tax Group examines the high-tax exclusion (HTE) in new final regulations under the global intangible low-taxed income (GILTI) regime and the potentially precarious side effects U.S. shareholders face in choosing whether to apply the HTE.
The 2020 final regulations apply the GILTI HTE on a “tested unit” and “all or nothing” basisThe 2020 proposed regulations would conform the Subpart F HTE to the finalized GILTI HTE, creating a single unified HTE for both regimesThe decision whether to elect the GILTI HTE must balance implications under other TCJA provisions and possibly [...]Read more
Questioning Old Regulations
In response to the Third Circuit's SIH Partners v. Commissioner ruling, our Federal Tax Group reflects on the decision and suggests taking a second look at old Treasury regulations that might not survive judicial scrutiny.
The court worked hard to save Section 956
How much deference will a court give Treasury?
For example: Section 951
Read the full advisory here. [...]Read more
Plot Twist – Proposed Regulations Mean Section 956 Did Not Actually Survive Tax Reform Intact
Our International Tax Group takes stock of new proposed regulations that try to keep Section 956 relevant despite the Tax Cuts and Jobs Act.
Many were left scratching their heads
“A result directly at odds with the manifest purpose of Section 956”
Impact of the proposed regulations
Read the full advisory here. [...]Read more