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Subpart F Contract Manufacturing Regulations: What They Provide and Practical Applications


Thursday, February 26, 2009
Product Code - TMAU02
Speaker(s): Alan W. Granwell, Michael A. DiFronzo, Joseph M. Calianno
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Agenda

The Internal Revenue Service recently released final and temporary regulations (the "Regulations") dealing with whether contract manufacturing arrangements entered into by a controlled foreign corporation ("CFC") will constitute manufacturing for Subpart F purposes.

Presentation Objectives:

In this 60-90 minute webinar, recorded on February 26, 2009, speakers from the government and private sector review the new Subpart F contract manufacturing provisions, and:
• Explain the reasons for, and the modifications to, the "substantial contributions test.’
• Explain the reasons for, and the modifications to, the Subpart F branch rules.
• Explain the delayed effective date provisions and how taxpayers may choose to apply the Regulations retroactively to open taxable years.

Upon completion of this program, participants will:

•Understand the policy underlying the modifications to the Substantial Contributions Test of the Proposed Regulations
• Know how to apply the Substantial Contributions Test of the Regulations.
• Understand the policy underlying the modification of the branch rules.
• Know how to apply the new branch rules of the Regulations.
• Know what the Regulations do not cover in the branch rule area, why and prospective additions.
• Know how to apply the effective date provisions of the Regulations.

Mr. Granwell moderated the program and Mr. Difronzo provided an explanation of the reasons for and modifications to the regulations. Mr. Calianno provided comments and the panel will suggest planning opportunities and traps for the unwary. 
 

Speakers

Alan W. Granwell, Michael A. DiFronzo, Joseph M. Calianno

Alan W. Granwell, Partner, DLA Piper LLP
Mr. Granwell has practiced in the area of international taxation for over 35 years. He represents US multinational groups and US high-net-worth individuals investing or conducting business abroad, and foreign multinational groups and foreign high-net-worth individuals investing or conducting business in the United States.

Mr. Granwell's practice encompasses matters involving tax planning and related compliance and tax controversies. He also conducts an active administrative practice, regularly representing clients before the Internal Revenue Service and the US Treasury Department (including negotiating advance pricing agreements, conducting competent authority proceedings, assisting clients in obtaining regulatory changes, and tax rulings), and advising on tax legislation matters.

From 1981 through 1984, Mr. Granwell was the International Tax Counsel and Director, Office of International Tax Affairs at the US Department of the Treasury. In that capacity, Mr. Granwell was the senior international tax advisor at the Treasury Department and was responsible for advising the Assistant Secretary for Tax Policy on legislation, regulations, and administrative matters involving international taxation and directing the US tax treaty program.

Mr. Granwell has written numerous articles and has been a frequent lecturer on international tax matters.

Mr. Granwell has been named one of the world's leading tax lawyers in independent studies of tax
law professionals worldwide, including studies published by Chambers & Partners, Euromoney
Publications, The World’s Leading Lawyer for Business, The Best Lawyers in America, The Best of the Best USA 2008 and Who's Who Legal, and also has been named as one of the world's leading transfer pricing advisers in the Euromoney Guide to The World's Leading Transfer Pricing Advisors.
Chambers USA: America's Leading Lawyers for Business notes that Mr. Granwell embodies “a unique combination of extreme technical skill, an international perspective on tax and a tremendous list of global contacts." He has been named a Washington, DC Super Lawyer.

Michael A. DiFronzo, Deputy Associate Chief Counsel (International – Technical)
Michael A. DiFronzo serves as the Deputy Associate Chief Counsel (International – Technical). In this capacity, he has primary responsibility for the oversight of published guidance related to the taxation of cross-border investment and related issues. He assumed this role in 2006.

Prior to joining Chief Counsel, Mr. DiFronzo served as a partner in the Tax Department of McDermott Will & Emery LLP in Chicago, Illinois. There he served as an international tax attorney for large U.S. and non-U.S. multinational corporations. Mr. DiFronzo’s work experience also includes the National Tax Office of Deloitte & Touche LLP and the Washington, DC office of Weil Gotshal & Manges LLP.

Mr. DiFronzo received an LL.M. in taxation from New York University School of Law, a J.D. from University of Montana School of Law, and a B.S. in Accounting from Montana State University. Mr. DiFronzo currently serves on the Board of International Tax Advisors and as a guest lecturer for New York University School of Law’s graduate tax program. Mr. DiFronzo also serves on the Board of Visitors for the University of Montana School of Law.

Mr. DiFronzo’s professional affiliations include the tax sections of the American Bar Association and the DC Bar Association. He is the author of numerous articles on cross-border tax issues and a frequent speaker.

Mr. DiFronzo is currently a member of the District of Columbia, Illinois, Montana and Nevada bar associations and is admitted to practice before the United States Tax Court. He is also licensed as a CPA in Montana.

Joseph M. Calianno, Partner, Grant Thornton International Technical Tax Practice Leader, National Tax Office
Mr. Calianno is partner and the International Technical Tax Practice Leader in the National Tax Office of Grant Thornton LLP. He practices in all areas of international taxation and helps assist the offices around the firm and the firm’s external clients with complex international issues. He regularly advises on issues relating to cross border restructuring and financing, subpart F, foreign tax credit planning, tax treaties and global tax rate reduction.

Prior to joining Grant Thornton LLP, Joe was a Special Counsel to the Deputy Associate Chief Counsel (International) in the office of Chief Counsel, Internal Revenue Service. As a Special Counsel, he was the technical advisor to the Associate and Deputy Associate Chief Counsel (International) and was involved in reviewing international regulations, revenue rulings, Notices, TAMs, PLRs and providing technical advice to the field. He also served as an Assistant Branch Chief in Branch 6 (Corporate) in the Office of Chief Counsel in which he reviewed corporate public guidance projects, PLRs and TAMs. Additionally, he was an Attorney-Advisor in Branch 4 (International) in the office of Chief Counsel.
Mr. Calianno also spent several years in private practice at the National Tax Office of a Global accounting firm and a large law firm in which he advised clients in several areas of tax law, including international, corporate and partnership.

Joe is a guest lecturer at New York University Law School in the Graduate Tax Program and has been and adjunct faculty member at Georgetown Law School in the Graduate Tax Program.