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Monthly Archives: June 2011

Recent Decision of Judgment of the Court (Grand Chamber) of EU in Akzo Nobel Chemicals, et al v. European Commission Imperils Attorney Client Privilege for Foreign Based Subsidiaries, Including in U.S. Tax Proceedings and Non-Tax Proceedings

Posted in Federal Taxation Developments

In a decision that has wide-sweeping implications for companies that are doing business in the EU or otherwise become a party to a legal or administrative proceeding governed by the EU, as well as to American persons engaged, directly or indirectly such as through ownership of a controlled subsidiary or company in the EU, the Grand… Continue Reading

Representatives of Japan and the United States Commence Negotiations on Amendments to the U.S.-Japan Income Tax Treaty

Posted in Federal Taxation Developments

    The U.S. Department of the Treasury having announced on June 2, 2011 that it planned to begin formal negotiation of amendments to the existing bilateral income tax treaty with Japan, which Treaty was entered into force in 2004, commenced negotiations on June 8-10 in Washington, D.C. The amendments to the Treaty being discussed… Continue Reading

Tax Court of Canada Approves of Foreign Tax Credit Generator Arrangement in Canada Limited v. The Queen (Case 4145358); Cross Border Impacts

Posted in Federal Taxation Developments

In General: U.S. Efforts to Thwart Foreign Tax Credit Generator Arrangements Several years ago a new tax avoidance (or “abusive” as the Service might phrase it) technique was identified by the Large and Mid-Size Business (LMSB) Division of the IRS in a field directive (LMSB-04-0208-003)(3/19/2008) on the subject of foreign tax credit (FTC) generators.  … Continue Reading

Tax Court Examines Tax Consequences to Taxpayer’s Sale of Conservation Easement State Income Tax Credits in George H. Tempel, 136 T.C. No. 15 (2001)

Posted in Federal Tax Case Law Decisions

In Tempel, the taxpayers sold a portion of their newly received transferable Colorado state income tax credits, i.e., in the  aggregate sum of $260,000, that resulted from a donation of a conservation easement on approximately 54 acres of the petitioners’ land in Colorado.   In reporting two transactions in which the taxpayers subsequently sold $110,000 of… Continue Reading

European Court of Justice Decision in Prunus SARL v. France (C-384/09) Has Major Tax Implications for Companies Established in Certain Off Shore Tax Havens or Territories

Posted in Federal Taxation Developments

France for years has imposed an annual tax of 3% of the value of immovable property situated in France when that property was owned, directly or indirectly, by a legal person. France law provided an exemption from this excise  for those legal persons whose seat of management was situated in a country or territory that… Continue Reading

Treasury and IRS Issue Final Regulations Under Section 367(b) For Certain Triangular Reorganizations: “The Killer B” Regulations.

Posted in Federal Tax Regulations

In May, 2008, temporary and proposed regulations were issued under §367(b) to address the Service’s concern about the tax impacts arising from certain triangular reorganizations involving foreign corporations, a/k/a “Killer B” transactions, in which a subsidiary purchases, in connection with the reorganization, stock of its parent corporation in exchange for property, and exchanges the parent corporation’s stock for… Continue Reading