Articles

Volume 38 Number 11 Friday, November 13, 2009

Final Regulations on Intercompany Services and Stewardship: The Final Roadmap for Identifying, Allocating, and Charging for Centralized Services by Gregory J. Ossi, Esq., Per Juvkam-Wold, Esq., Gregory Lubkin, Esq., and Nestor Maksymiuk, Esq. PricewaterhouseCoopers LLP* On July 31, 2009, the Internal Revenue Service (IRS) and the Treasury Department issued final regulations (“the Final Regulations”) dealing with controlled services transactions (or “intercompany services”) and ownership of intangible property under §482, as well as certain related matters, such as the allocation and apportionment of stewardship expenses under §861. 1 The Final Regulations finalize the regulatory guidance on key transfer pricing concepts that apply broadly to most multinational taxpayers that are based or have operations in the United States. The provisions dealing with intercompany services and stewardship are of particular importance to multinational taxpayers that are headquartered in the United States.

More >>

What's in a Name? A Tale of Two Arm's-Length Standards by Michael F. Patton, Esq. Ernst & Young LLP Los Angeles, CA No, gentle reader, this is not a dissertation on themes in world literature. Rather, the subject of this article is a much more prosaic one: the meaning and scope of the concept of “arm's length” in that arcane field of taxation that goes by the name of “transfer pricing.”

More >>

MEXICO-U.S. INVESTMENT: Mexican Tax Perspective

Proposed Changes to the Mexican Consolidated Return Rules by Fred J. Barrett, Esq., and Hector Garcia, Esq. PricewaterhouseCoopers LLP Mexico City, Mexico On September 8, 2009, the President of Mexico (and the Mexican tax authority) presented to Congress a tax reform bill that, if enacted, would significantly affect many taxpayers filing consolidated income tax returns beginning in 2010. There were several other provisions in the President's proposal; however, this article focuses solely on the income tax consolidation provisions — summarizing the existing tax consolidation rules, potential effects of the changes in tax law, and possible actions that should be considered.

More >>