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Results: 1-10 of 12

Recent legislation modifies application of the related party redemption provision contained in Section 304: in the Education Jobs and Medicaid Assistance Act of 2010, p.l. 111-226

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • March 28 2011

Section 304 provides provides generally that, for purposes of 302 and 303, if one or more persons are in control of each of two corporations and one such corporation (the "acquiring corporation") acquires in exchange for property stock of the other corporation (the "issuing corporation") from the person (or persons) so in control, then, unless 304(a)(2) applies, the property is treated as received in redemption of the stock of the acquiring corporation

Tax Court holds foreign parent's fee for guarantying U.S. subsidiary's debt is foreign source service income

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • May 29 2010

In Container Corp, 134 TC No 5 , Tax Ct Rep (CCH) 58131, 2010 WL 571831 (2010), a case of first impression, the Tax Court, per the opinion of Justice Holmes, held that payments received by Vitro, S.A., a Mexican corporation, from its US subsidiary for the guarantee of the subsidiary's debt obligations was not income from sources within the U.S. under Section 861 , and, therefore, was not subject to withholding under Section 1442

Anticipated up-tick in merger and acquisition activity; don't forget about the change of control provision, Section 280G

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • August 23 2010

Congress enacted 280G in 1984 over concern that contracts between a corporation and its employees providing golden parachutes directly (or indirectly) attributable to a takeover of a target company would have an adverse effect on takeover activity in general, elevate the concerns of the management of the target company beyond permitted boundaries, including the deflection of shareholder value from the target's shareholders to key management and control shareholders of the target company

UK telecommunications company Vodafone recently receives favorable ruling from Supreme Court of India

  • Fox Rothschild LLP
  • -
  • India
  • -
  • June 26 2012

This past January, the Supreme Court in India ruled in Vodafone International Holdings B.V v. Union of India,Civil Appeal No. 733 of 2012 (arising from S.L.P. (C) No. 26529 of 2010) that the sale of stock of a company that was non-resident in India to another non-resident company was not subject to income tax in India

IRS releases private letter ruling on dividend impacts of a "foreign sandwich"

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • January 20 2010

PLR 200952031 (12242009) addressed the application of the dividends received deduction (DRD) in the foreign context where a foreign corporation is the parent of a U.S. subsidiary

Increased foreign investment in United States requires review of the FIRPTA provisions

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • November 9 2011

Under 26 IRC 897, which was adopted into law as part of the Foreign Investment in Real Property Tax Act (“FIRPTA”) in 1980, gain realized by a foreign person with respect to the disposition of an interest in US real property (“USRPI”) is characterized as income effectively connected with the conduct of a U.S. trade or business and subjects the foreign person to U.S. income tax on the net income derived from such gain at normal U.S. income tax rates

Selling off a member of a consolidated group: intercompany debt

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • December 3 2009

Typically, the parent corporation of a U.S. based consolidated group of corporations will act as the primary source of capital to members of the group

Tax Court, in a fully reviewed opinion, holds that 90 stock loan tax scheme program was a disguised sale

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • July 10 2010

In August 2001, Calloway ("Petitioner") entered into an agreement with Derivium Capital, LLC whereby Petitioner transferred 990 shares of his IBM common stock to Derivium in exchange for the sum of $93,586

U.S. and multi-national companies engaged in Canadian business operations through controlled Canadian subsidiaries need to stand on guard for possible legislation on interest stripping and other rules

  • Fox Rothschild LLP
  • -
  • Canada, USA
  • -
  • December 6 2012

Many U.S. companies engage in business operations in foreign countries, including Canada, through the use of a controlled or wholly owned subsidiary

Canadian investment in U.S.-based private equity funds: preference for the U.S. limited liability company

  • Fox Rothschild LLP
  • -
  • Canada, USA
  • -
  • February 4 2011

Canadians seeking to make investments in US-based private equity funds do face a challenging landscape attributable to the multitude of US taxing authorities, federal, state and local governmental taxing authorities, as well as a somewhat counterintuitive home country tax regime, in reporting their U.S. operations back home in Canada