Outside Publication

Section 367 Adrift: Old Statute, New Applications – Part 2, Tax Notes

June 06, 2016

This part of the report shows how the IRS has began to pursue other goals such as subjecting to U.S. income tax funds or other property transferred from a foreign subsidiary to its U.S. parent, even if the property does not represent income or gain in any conventional sense, and expanding the reach of U.S. taxing jurisdiction over income earned by foreign subsidiaries that has not been repatriated.

It concludes with observations about how the IRS’s departures from the decades’-long agreement about the proper scope of section 367 may be challenged.

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