Daily Tax Report ®

Sprint/T-Mobile Merger • Trump’s Returns • O-Zone Disguised Sales

Aug. 31, 2019, 2:01 PM

This is a weekend roundup of Bloomberg Tax Insights, which are written by practitioners featuring expert analysis on current issues in tax practice and policy. The articles featured here represent just a handful of the many Insights published each week. For a full archive of articles, browse by jurisdiction at Daily Tax Report, Daily Tax Report: State, and Daily Tax Report: International.

This week we cover the history and current status of advance pricing arrangements in Europe, the crossed fingers behind the latest amendment to the Sprint/T-Mobile merger agreement, the other side of the Trump tax return debate, and avoiding disguised sales when investing in opportunity zones. We’ll hear from:

  • KPMG transfer pricing experts in the U.S. and Europe on the growth of advance pricing arrangements and how the OECD’s BEPS plan could increase their use in Europe
  • George Yin of the University of Virginia School of Law on why tax privacy concerns shouldn’t stop congressional efforts to obtain President Trump’s tax returns
  • Robert Willens on what needs to happen tax-wise for the Sprint/T-Mobile merger to go forward
  • Gene Crick of Nelson Mullins on how to invest in opportunity funds while avoiding partnership disguised sales
Photographer: Alastair Pike/AFP/Getty Images

The Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting action plan is expected to significantly increase transfer pricing controversy. In a two-part article, transfer pricing experts with KPMG LLP (US) and KPMG member firms throughout Europe provide a historical overview, set forth current statistics of advance pricing arrangements (APAs) in European jurisdictions, summarize recent developments, and outline key takeaways in advance pricing arrangements (APAs). Read: Advance Pricing Arrangement Series—Europe (Part 1) and Advance Pricing Arrangement Series—Europe (Part 2)

Two previous Insights published by Bloomberg Tax and Bloomberg Law have contended that if Congress obtains President Trump’s tax returns, the action could threaten the privacy protection of tax returns. George Yin of the University of Virginia School of Law, former chief of staff for the Joint Committee on Taxation, argues that there is little chance of an improper public disclosure or a political tit-for-tat. Read: Tax Privacy Concerns Do Not Justify Stopping Efforts to Obtain the President’s Tax Returns

The bumpy Sprint/T-Mobile merger may face tax hurdles after making it through the antitrust obstacles. Robert Willens highlights the challenges the parties may face to complete the proposed transaction tax-free. Read: Dusting Off the Sprint/T-Mobile Merger

The opportunity zone program is intended to encourage investors to move capital from mature investments into economically struggling neighborhoods, but the program comes with the risk of missteps. Gene Crick of Nelson Mullins explains how to negotiate the partnership disguised sale rules when moving that capital. Read: Avoiding Partnership Disguised Sales in Qualified Opportunity Fund Investments

From the Archive

Bloomberg Tax contributors have been discussing on a regular basis the benefits of advance pricing agreements or arrangements and the difficulties in putting them together.

Steven Wrappe and Matthew Kramer of Grant Thornton LLP laid out the the advantages of advance pricing agreements (APAs) for multinationals and recent changes in the U.S. APA process.

Clive Jie-A-Joen, Monique van Herksen, and Jo Crookshank of Simmons & Simmons analyzed transfer pricing and indirect tax aspects companies facing Brexit may want to consider and address while they are making and implementing (last-minute) Brexit-triggered decisions.

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The Consolidated Appropriations Act of 2018 retroactively repealed the original tax code Section 199A(a)(2) provision that allowed patrons a 20% deduction for “qualified cooperative dividends.” It also retroactively repealed the 20% deduction granted to specified agricultural and horticultural cooperatives under the original tax code Section 199A(g). Kristine A. Tidgren of Iowa State University explains the proposed regulations for cooperatives and their patrons.

Bloomberg Tax Insights articles are written by experienced practitioners, academics, and policy experts discussing developments and current issues in taxation. To contribute, please contact Erin McManus at emcmanus@bloombergtax.com.

To contact the reporter on this story: Erin McManus in Washington at emcmanus@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Kevin A. Bell at kbell@bloombergtax.com

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