1:30pm Opening Remarks by the Chair.
1:35pm International Tax Issues of Financial Businesses of US Enterprises. This panel will address international tax issues affecting financial businesses of US-based enterprises, including in particular issues under the "active financing" rules of section 954(h) as well as other deferral and foreign tax credit issues, including investments in US property under section 956, holding period requirements under sections 901(k) and (l), and issues presented by such transactions as securities loans and swaps. Moderator: Robert E. Culbertson, King & Spalding LLP, Washington, DC. Panelists: Josh McKniff, GE Commercial Finance Real Estate, Stamford, CT; David Arroyo, Merrill Lynch, New York, NY; David Ernick, Attorney-Advisor, Department of Treasury, Washington DC.
2:35pm Hot Issues in Cross-Border Financing by US Multinationals. This panel will focus on international financing strategies and structures of US multinationals, including offshore treasury/hedging centers, forex and withholding issues, financing of passthrough entities (including the comment request under section 956 in respect of loans by CFCs to partnerships), and the use of hybrid instruments/entities. Moderator: David Golden, Ernst & Young LLP, Washington, DC. Panelists: Joseph Calianno, Grant Thornton LLP, Washington DC; Brent Gregoire, Dell Inc., Round Rock, TX.
BUSINESS MEETING
Date: 5/5/06
Start Time: 5:30PM
End Time: 6:30PM
YOUNG LAWYERS SUBCOMMITTEE
Date: 5/5/06
Start Time: 5:30PM
End Time: 6:30PM
SECTION PROGRAM
Date: 5/6/06
Start Time: 2:00PM
End Time: 5:00PM
Use of Hybrid Entities in Cross Border Tax Planning – A Primer Addressing Tax and Ethical Considerations
“Hybrid entities” is a term that describes business organizations treated as partnerships in one jurisdiction and corporations in a second jurisdiction. That dichotomy of characterization offers tax planners unique opportunities to mix and match various tax rules in order to reduce the overall tax burden. This two-panel mini-program provides an overview of opportunity and risk available to the sophisticated investor. It is intended for practitioners who are not specialists in international taxation and is expected to be the first of a series of programs that will explore various opportunities and issues encountered in the life of a hybrid entity.
2:00pm Use of Hybrid Entities in Inbound Investment Transactions. This panel will discuss the basic uses of hybrid entities for inbound investment into the US. The panel will discuss the use of so-called "domestic reverse hybrids" as well as problems that exist when a foreign hybrid entity claims a tax treaty benefit for dividends, interest, and royalties. Also discussed are new section 1446 withholding regulations for partnerships, corporate issues in the home country of the investor at the time profits are distributed, and ethical considerations inherent in this type of “tax arbitrage” transaction.
Moderator: Sam Kaywood, Alston & Bird LLP, Atlanta, GA
Panelists: Alan I. Appel, Bryan Cave LLP, New York, NY
Joan C. Arnold, Pepper Hamilton LLP, Philadelphia, PA
Jordi Dominguez, Perez Garrigues, New York, NY
3:30pm Use of Hybrid Entities in Outbound Investment Transactions. This panel will discuss uses of hybrid entities for US investment in other countries. Topics include the classification of foreign entities, tax treatment of asset transfers from the US, and structures designed to reduce foreign tax without any offset for immediate US tax under subpart F. Issues identified in foreign countries such as know your client rules and limitation on access to treaties will be addressed as well as emerging European entities and new tax rules that foster use of European hybrid entities.
Moderator: Professor Lawrence A. Lokken, Levin College of Law, University of Florida, Gainesville, FL
Panelists: Werner Heyvaert, Stibbe, Brussels, Belgium
Kathleen Penny, Blake Cassels & Graydon LLP, Toronto, ON
Marco Q. Rossi, Marco Q. Rossi & Associati, New York, NY
Sponsored by: US Activities of Foreigners & Tax Treaties Committee, Foreign Activities of US Taxpayers Committee, Foreign Lawyers Forum
