Strategizing Multinational Tax Risks

Tax Executives Institute, Inc. (TEI) recently provided comments to the proposed BEAT regulations, including the following:

• Use of services cost methodology should be clarified
• A payee’s Subpart F income should be excluded (i.e. avoid double taxation)
• Nonrecognition transactions should be excluded
• A payor’s recognized loss transaction should not also have BEAT implications
• No blended rates
• Anti-abuse rule should be clarified
• A recomputation approach should be available for NOL taxpayers

The thoughtful comments provide additional context of the intent for the BEAT provisions, and suggestions to carry out the intent of legislation without extending into other transactions that would have been initially thought as not within the BEAT purview.

Click to access TEI-Comments-Proposed-BEAT-Regulations-FINAL-to-IRS-19Feb2019.pdf