Navigating the Effectively Connected Income Tax Regime: Avoiding Devastating Impact on Taxes and Financial Statements
Implementing Compliant Tax Strategies to Avoid or Mitigate Punitive Taxation
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will provide corporate tax professionals and advisers to multinational corporations (MNCs) and other multinational businesses with a detailed, practical, and thorough guide to mitigating the risk of high tax levels on effectively connected income (ECI). The panel will provide practical guidance concerning tax planning and using fully compliant offshore companies to achieve a desirable overall effective tax rate in a multinational business.
Outline
- ECI and financial statement risks
- Background
- Overview of the ECI rules
- Growing IRS scrutiny of profit shifting and OECD base erosion and profit shifting (BEPS) initiative
- When an MNC or multinational business may be subject to the ECI risks
- Value drivers predominantly performed by U.S. group members
- U.S.-located control and decisionmaking
- Lack of foreign entity CEO and management capability
- Major issues for potentially vulnerable MNCs or multinational businesses
- Risk assessment
- Treaty issues
- High tax liabilities and penalties
- Online business risks
- Financial statements
- Actions to mitigate risk
- Post-tax filing
- Current tax planning and filings
- Future tax planning
Benefits
The panel will cover these and other key issues:
- What is ECI?
- How can tax executives and advisers assess the risks of ECI and its impact on financial statements?
- How can tax executives and advisers steer companies on avoiding high ECI tax liabilities and penalties?
- What are the key steps to mitigate taxable ECI risks in the past, present, and future?
Faculty
Randy J. Clark
Partner
K&L Gates
Mr. Clark focuses his practice on U.S. federal and international tax matters relating to taxable and tax-deferred... | Read More
Mr. Clark focuses his practice on U.S. federal and international tax matters relating to taxable and tax-deferred acquisition, disposition, and restructuring transactions, as well as on income tax planning for closely-held businesses and high net worth individuals. Beyond his primary practice of transaction tax, Mr. Clark has advised clients throughout the life cycle of their businesses, from organization through exit, liquidation, or recapitalization. He has substantial experience as to choice of entity issues and the resulting impact on owner and investor tax treatment, and otherwise with the tax issues related to the formation of corporations, LLCs, general and limited partnerships and other joint venture arrangements. Mr. Clark has substantial experience in the drafting and analysis of tax provisions in syndicated lending arrangements and also regularly advises on the tax considerations of raising capital through other registered and unregistered capital markets transactions. In the mezzanine finance space, he has advised borrowers, lenders, and co-investors on tax considerations both as a result of the financing and the impacts and exposures resulting from the underlying M&A transaction.
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Adam J. Tejeda
Partner
K&L Gates
Mr. Tejeda counsels clients on a wide range of tax matters associated with domestic and international business... | Read More
Mr. Tejeda counsels clients on a wide range of tax matters associated with domestic and international business transactions. He focuses his practice primarily on tax planning in connection with inbound and outbound investments; cross-border financings; domestic and cross-border mergers and acquisitions; multinational IP planning; advising US based clients with regards to Subpart F; corporate and tax aspects of joint ventures and other partnership issues; hedge fund and private equity fund structures; tax planning with respect to the tax consequences of overseas operations of U.S. multi-nationals; and internal reorganizations.
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