This feed is published daily with selected new or updated
content from across the Lowtax Network. For a list of Lowtax Network
sites, many of which feature daily news, see
below.
Providing essential tax news and information
for globally mobile artists, contractors, entrepreneurs, professionals,
small businesses, sportspersons and entertainers.
Lowtax Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
US Appeals Court Overturns Cost Sharing Ruling,
by Glen Shapiro, Law AndTax-News.com, New York
Friday, May 29, 2009
A federal appeals court has overturned a decision in favour of semi-conductor
firm Xilinx in a case which has implications for the way multinationals allocate
costs between subsidiaries.
The case in question examined California-based Xilinx’s allocation of
costs with its Irish subsidiary and dealt with cost sharing, a common practice
for developing new intangibles and products for multinational companies. The
case hung on whether stock options constitute intangible development costs that
must be included in a cost sharing arrangement.
In a judgment published on August 30, 2005, the Tax Court found that Xilinx’s
cost sharing agreement did not, as the IRS had argued, include any sharing of
cost for stock option expenses and met the arm’s-length standard of the
IRS Tax Regulations.
This issue was tried in July 2004 for the company’s fiscal years 1996
through 1999. The Tax Court concluded that the company was not liable for any
tax, penalties or interest associated with the IRS assertions. The IRS subsequently
filed a Notice of Appeal against this decision in August 2006.
In reversing the Tax Court’s decision, Ninth Circuit Judge Raymond Fisher
wrote: "Companies in a cost-sharing arrangement must share all costs related
to the joint venture.”
The case has been handed back to the Tax Court to decide on the tax and penalties
due to the IRS.
Xilinx is one of a number of US technology companies being pursued by the
IRS for outstanding taxes related to transfer pricing arrangements with Irish
subsidiaries.
In January, the IRS and the Treasury issued long-awaited 'proposed and temporary'
regulations under Section 482 of the Tax Code dealing with: Methods to Determine
Taxable Income in Connection With a Cost Sharing Arrangement.
The temporary regulations affect domestic and foreign entities that enter
into cost sharing arrangements and are particularly relevant to transactions
involving intangible assets. The regulations are effective as of January 5,
2009.
The temporary regulations generally provide guidance regarding the application
of section 482 and the arm’s length method to cost sharing arrangements.
This comprehensive report in our Intelligence Report series
examines the global and national landscapes in which companies can use transfer
pricing to improve their after-tax returns, including summaries of recent
developments in design of the corporate supply train, the usefulness of 'offshore'
in international corporate tax planning, and a section covering the spread of
DTAAs and CFC laws. It is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp
and a description of the report can be seen at
http://www.lowtaxlibrary.com/asp/description_report16.asp
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here for a brief introduction
to RSS and instructions on how to get the Tax-News feed.
IMPORTANT NOTICE: THE LOWTAX NETWORK has
taken reasonable care in sourcing and presenting the information contained on
this site, but accepts no responsibility for any financial or other loss or damage
that may result from its use. In particular, users of the site are advised to
take appropriate professional advice before committing themselves to involvement
in offshore jurisdictions, offshore trusts or offshore investments. All materials
on this site copyright THE LOWTAX NETWORK 1999 to 2010. Contact
us for further information.
TAX-NEWS.COM
Free Tax-News Feed