Idan Netser

PFIC: What U.S. Investment Funds Should be Particularly Aware of and Newly Proposed Regulations. An article I co-authored with my amazing colleague Kris Hatch.

Treasury and the IRS have issued proposed regulations filling a number of gaps and providing necessary guidance on the Base Erosion and Anti-Abuse Tax (BEAT). In general, the guidance is reasonably consistent with the statute and legislative history, although there are some elements that cannot be readily inferred from these sources. Among other things, the proposed regulations elucidate certain specific issues regarding base erosion payments, including the services cost method, treatment of… Mehr zeigen

Treasury and the IRS have issued proposed regulations filling a number of gaps and providing necessary guidance on the Base Erosion and Anti-Abuse Tax (BEAT). In general, the guidance is reasonably consistent with the statute and legislative history, although there are some elements that cannot be readily inferred from these sources. Among other things, the proposed regulations elucidate certain specific issues regarding base erosion payments, including the services cost method, treatment of cost of goods sold under Section 471 or Section 263A, and netting of payments. Weniger anzeigen

Treasury and the IRS have issued proposed regulations filling a number of gaps and providing necessary guidance on the Base Erosion and Anti-Abuse Tax (BEAT). In general, the guidance is reasonably consistent with the statute and legislative history, although there are some elements that cannot be readily inferred from these sources. Among other things, the proposed regulations elucidate certain specific issues regarding base erosion payments, including the services cost method, treatment of… Mehr zeigen

Treasury and the IRS have issued proposed regulations filling a number of gaps and providing necessary guidance on the Base Erosion and Anti-Abuse Tax (BEAT). In general, the guidance is reasonably consistent with the statute and legislative history, although there are some elements that cannot be readily inferred from these sources. Among other things, the proposed regulations elucidate certain specific issues regarding base erosion payments, including the services cost method, treatment of cost of goods sold under Section 471 or Section 263A, and netting of payments. Weniger anzeigen

Released on November 30, 2018, the foreign tax credit proposed regulations provide a comprehensive new framework for calculating the foreign tax credit in light of several changes made by the Tax Cuts and Jobs Act (TCJA or the Act). With respect to changes made by the TJCA, the new regulations are proposed to be effective generally for taxable years beginning after the enactment of TCJA.

We are witnessing a new wave of early-stage technology startups joining forces through mergers and acquisitions, many of which have been led by Israeli startups.

Startups, investors, clients and friends regularly ask about the tax benefits associated with having stock qualify as qualified small business stock (QSBS). This is an important issue that investors, founders and employees receiving stock-based compensation should be aware of, particularly because if a stock is QSBS, the person who holds it may be eligible for 100 percent exclusion from federal tax on the first $10 million (or more) of the capital gain realized on its disposition.

The… Mehr zeigen

Startups, investors, clients and friends regularly ask about the tax benefits associated with having stock qualify as qualified small business stock (QSBS). This is an important issue that investors, founders and employees receiving stock-based compensation should be aware of, particularly because if a stock is QSBS, the person who holds it may be eligible for 100 percent exclusion from federal tax on the first $10 million (or more) of the capital gain realized on its disposition.

The discussion below outlines the different requirements that must be satisfied for stock to be eligible for QSBS treatment. When forming or joining a startup company, founders, investors and employees often request a short opinion letter or a representation by the company that the company’s stock to them should meet the corporate-level requirements for the stock to constitute QSBS. An opinion letter or a representation should be based on information provided through a questionnaire completed by the company. Weniger anzeigen

A foreign corporation engaged in a trade or business within the United States during the taxable year is subject to US federal income tax on its taxable income that is effectively connected with the conduct of a trade or business within the United States.

A foreign fund that originates loans in the US through the origination services of an independent agent that does not have the power or the authority to bind and conclude contracts on behalf of the foreign fund may find itself having a… Mehr zeigen

A foreign corporation engaged in a trade or business within the United States during the taxable year is subject to US federal income tax on its taxable income that is effectively connected with the conduct of a trade or business within the United States.

A foreign fund that originates loans in the US through the origination services of an independent agent that does not have the power or the authority to bind and conclude contracts on behalf of the foreign fund may find itself having a trade or business within the US that produces income effectively connected with that business in the form of the interest received on the loans to US borrowers. That, at least, is the view of the IRS. Weniger anzeigen

The approval of an acquisition transaction of a privately held company typically requires a majority vote by the company's shareholders. However, in certain circumstances, the majority shareholders may need the minority shareholders to approve the transaction as well. The minority shareholders' approval may be required under state law or by the company's incorporation documents, it may be desired to protect the company's reputation, or to ensure its continuing operations without interference… Mehr zeigen

The approval of an acquisition transaction of a privately held company typically requires a majority vote by the company's shareholders. However, in certain circumstances, the majority shareholders may need the minority shareholders to approve the transaction as well. The minority shareholders' approval may be required under state law or by the company's incorporation documents, it may be desired to protect the company's reputation, or to ensure its continuing operations without interference. To secure the minority shareholders' approval of the transaction, the majority shareholders often pay the minority shareholders for their consent. Such payment is often referred to as a "side payment." Weniger anzeigen

The US landscape underwent significant developments in the past year
(2013/14), including US companies entering into inversion transactions,
developments relating to BEPS, foreign tax credit and Section 956
changes, as well as new guidance relating to competent authority and
advance pricing agreements, and developments relating to Section 367(d)
and the definition of intangibles. The article provides a
broad overview of these developments.