Dispute Resolution Options: What Impact Will Tax Reform Have?

The session addresses the question of how tax reform, especially a possible shift to a territorial taxing regime, would affect IRS administrative developments in transfer pricing. In particular, the session examines whether a move to territoriality would shift the IRS focus on migration of intangibles, and how such a move would impact the dispute resolution choices available to taxpayers and the IRS, including competent authority, APAs , PFAs, etc. A number of important issues will arise, such as whether the lack of a foreign tax credit would make the IRS less committed to CA/ bilateral APAs since there would no longer be an impact on the US fisc. Conversely, would taxpayers be more focused on foreign audit management and on having transfer pricing adjustments be more principle-based if a foreign tax credit did not make them whole? Would taxpayers be more (or less) interested in unilateral agreements with taxing authorities under territoriality than a worldwide taxing regime?