Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
As companies seek to capitalize on today's rapidly globalizing economy, they often look into doing business in foreign countries. Even the largest and most firmly established U.S. corporations, such as Apple, Microsoft and Pfizer, have recently expanded their footprints offshore. See, “Apple, Microsoft and Eight Other Corporations Each Increased Their Offshore Profit Holdings by $5 Billion or More in 2012: 92 Fortune 500 Corporations Boosted Their Offshore Stash by Over $500 Million Each,” Citizens for Tax Justice (March 11, 2013). A popular conduit for operating in a foreign country is a controlled foreign corporation (CFC). In 2012, U.S.-controlled foreign corporation earnings topped $793 billion as the world economy became increasingly interconnected. See, IRS, Statistics of Income.
How does the aforementioned trend impact the legal profession? That question was answered when a prominent New York-based law firm was sued over a credit agreement it drafted for its client Overseas Shipping Group (Overseas). Overseas brought suit to make the law firm pay for the legal services rendered attributed to Overseas, incurring an estimated $463 million tax liability. See, Overseas Shipholding Group, Inc. v. Proskauer Rose, LLP, 130 A.D.3d 415 (2015). The central issue in the case was whether the law firm gave due warning to Overseas of the potential tax ramifications of Internal Revenue Code (Code) Section 956. Section 956 governs the taxation of CFCs. See, 26 U.S.C. §956.
This article takes an in-depth look at Section 956. It sheds light on the critical aspects of the conflict between Overseas and its attorneys related to the tax laws applicable to CFCs. Guidance is provided on how to advise clients endeavoring to compete in today's global marketplace.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
As businesses across various industries increasingly adopt blockchain, it will become a critical source of discoverable electronically stored information. The potential benefits of blockchain for e-discovery and data preservation are substantial, making it an area of growing interest and importance.