International

Expert Analysis

• COVID-19 May Make Incomplete Contracts Renegotiable

  

  Intercompany agreements on transfer pricing that do not include a pandemic eventuality might be argued to be incomplete from an economics perspective, providing justification for controlled parties to negotiate a remediation, say Robin Hart and Steven Schwartz at Charles River Associates.

• How To Handle Congressional Queries On COVID-19 Relief

  

  Despite their informal nature, congressional inquiries regarding CARES Act implementation should not be taken lightly as these requests may be precursors to more formal and invasive investigations, say attorneys at Baker Donelson.

• Congress Must Create More Private Rights Of Action

  

  In light of the Trump administration's efforts to limit the enforcement of regulations during the pandemic and beyond, and the U.S. Supreme Court's severe limitations on private rights of action, Congress must take swift action, says attorney Todd Phillips.

• 2008 Recession Offers Lessons For COVID-19 Transfer Pricing

  

  Tax directors at multinational companies can look to a post-Great Recession profitability analysis of distributors, manufacturers and service companies for guidance on transfer pricing in the current economic environment, says Alan Alford at Bates White.

• Multinationals Should Review Their Transfer Pricing Methods

  

  Tax directors should review their transfer pricing methods for 2020 as the relatively simple way that traditional models allocate risk and profit for tax purposes may exacerbate the financial effects of the pandemic on multinational corporations, say managing directors at Duff & Phelps.

• NOL Carryback Rule Changes Bring Benefits For M&A Parties

  

  New federal tax rules in the CARES Act, allowing the use of net operating loss carrybacks, bring previously unavailable tax benefits and negotiation opportunities for parties to mergers and acquisitions, say attorneys at Polsinelli.

• Pandemic Elevates Cos.' Compliance Risks In Latin America

  

  While Latin American governments respond to pandemic-related financial needs, multinational companies face elevated compliance risks from increased interaction with government officials, and new enforcement policies related to the misappropriation of funds, expedited government contracting, increased transparency and monitoring, and international cooperation, say attorneys at K&L Gates.

• Distressed Debt Tax Opportunities For Foreign Investors

  

  Foreign investors can earn tax-free interest income on distressed debt issued by U.S. companies, as long as they steer clear of income classification pitfalls, says Seth Entin at Holland & Knight.

• Pandemic Complicates OECD Digital Tax Overhaul

  

  The Organization for Economic Cooperation and Development's decision last week to extend the deadline for a digital economy tax rewrite highlights novel pandemic-prompted issues that will need to be resolved, including the treatment of losses and an ideological debate between pro-growth and revenue-focused policies, says Joyce Beebe at Rice University.

• Tips For Non-US Entities Facing Tax ID Processing Delays

  

  Non-U.S. entities applying for taxpayer identification numbers during the pandemic, while IRS phone and fax lines are inoperative and mail processing is on hold, may need to employ alternative strategies to open bank accounts and meet tax filing requirements, say David Shapiro and Shane Hoffmann at Fried Frank.

• Adapting 2020 Tax Expectations To COVID-19 Developments

  

  Attorneys at Steptoe & Johnson consider unexpected international, federal and state tax developments that have occurred in response to the global pandemic, how they may impact individuals and corporations, and what measures may follow.

• Key Tax Considerations For Secondary Sales Of Private Funds

  

  Investors considering selling fund interests in the secondary market to create liquidity during the pandemic-related economic crisis should consider several tax and structuring issues that can impact the buyer, seller and the underlying fund, say attorneys at Mayer Brown.

• Safeguarding Foreign Investments During A Pandemic

  

  Investment agreements can protect foreign holdings when governmental measures in response to COVID-19 are overly restrictive, unnecessarily protracted or discriminatory, say attorneys at Ropes & Gray.