Canada: IRS Notice Targets U.S. Corporate Inversions

IRS Notice 2014-52 (the “Notice”) includes broad new rules designed to increase the tax cost of U.S. corporate inversions and reduce opportunities to lower global effective tax rates following an inversion. These new rules, generally effective only for transactions occurring on or after September 22, 2014, would limit so-called “cash-box” inversions, narrow opportunities to tailor the size of a U.S. corporation to fit under an exception, and preserve future U.S. taxation of existing controlled […]

By |September 25th, 2014|

United States: The New Deal: Hedge Fund Management Fees Are Subject To Social Security Taxes

It’s probably fair to speculate that there were significant numbers of tax aficionados (including the author of this article) among the audience for Ken Burns’ recent public television extravaganza on the Roosevelt dynasty. Unfortunately for this segment of the audience, the intersection of tax and FDR was not highlighted, with the passage of the Social Security Act receiving only scant mention. Social security taxes have risen dramatically since the enactment of the law. As […]

By |September 24th, 2014|

Canadian Federal Revised Anti-Avoidance Back-To-Back Loan Arrangement Proposals Provide Some Relief For Certain Financing Transactions Involving Multinational Groups

In Budget 2014, the Federal Government introduced new anti-avoidance rules for back-to-back loan arrangements aimed at financing transactions where a third party (e.g., a bank) is interposed between a Canadian borrower and a Specified Non-Resident1 of the Canadian borrower to circumvent either or both the Canadian thin cap rules (including the existing anti-avoidance back-to-back loan rules in subsection 18(6) of the Income Tax Act (Canada) (the “Act”)) and Canadian withholding taxes under Part XIII […]

By |September 24th, 2014|