US debt-equity special focus

Download the special report as a PDF

The IRS's fight against hybrid financing instruments is an issue US tax directors cannot afford to ignore.

Tax-minimising opportunities arise for multinationals when financing cross-border transactions because treatment of hybrid debt-equity instruments across jurisdictions is not uniform. And the US Tax Court has shown in recent rulings that tax planning, to benefit from such opportunities, is perfectly acceptable.

But the IRS does not like it and is increasingly challenging multinationals on the issue. This report analyses the Hewlett Packard, Scottish Power and PepsiCo debt-equity cases, pulling out the practical lessons for taxpayers considering putting debt-equity structures in place.

It also examines how to defend a debt-equity position against an IRS challenge, with exclusive insight from the taxpayer and adviser team involved in guiding Scottish Power to its hard-fought Tax Court victory over the IRS.

Join your peers by engaging in the debate on LinkedIn and Twitter. The ITR Twitter handle is @Intltaxreview and you can share your views using #ITRdisputes

Tweet this         #ITRdisputes         LinkedIn group

us-debt-equity1-court.jpg	How to deal with debt-equity in the US
us-debt-equity2-pepsi.jpg	Has PepsiCo's US Tax Court win revealed "super factor" in deciding debt vs equity cases?
us-debt-equity3-scottishpower.jpg	How Scottish Power's US Tax Court victory could hamper IRS
us-debt-equity4-hp.jpg	Hewlett-Packard's court defeat is bad news for US banks
Download this special report as a PDF

• UK taxpayers say US IRS is way behind HMRC in handling debt-equity cases

• US Court of Appeals ruling sheds light on debt vs equity

• Former IRS chief counsel tells taxpayers what to expect in tax litigation

• Amazon's US transfer pricing challenge could end IRS's aggressive intangibles approach

• Eaton's US Tax Court case could define obligations of parties to an APA

• US Court of Appeals Aloe Vera case raises information exchange fears

• Disputes in 2012: where the tax authorities succeeded

• US Supreme Court to address creditability of UK windfall tax

• What Union Carbide tells us about qualifying supplies in R&D

• What the UBS whistleblower payout means for corporate taxpayers

• US Federal Circuit decision in Dominion Resources invalidates IRS regulations

• How US multinationals can prepare their French subsidiaries for tax raids