WTP has significant experience confronting the array of international tax issues faced by U.S. individuals and companies with income or operations abroad, as well as foreign individuals and companies with income or operations in the U.S. We advise these individuals and companies on the tax implications of their cross-border transactions, including mergers and acquisitions and related financing transactions, and international restructurings, dispositions and divestitures.
For businesses, our recent experience includes:
- WTP advised a U.S. corporation in connection with its outbound expansion into Europe. This engagement involved developing a tax-efficient approach by which certain assets, including intellectual property, could be transferred to the client's newly formed foreign subsidiaries. In implementing this restructuring, our WTP international tax lawyers coordinated with a number of foreign solicitors in establishing the client's foreign subsidiaries and ensuring compliance with foreign tax law. Once the structure was in place, we were able to successfully transfer assets and equity without triggering any of the “anti-deferral regimes” of the Internal Revenue Code, including Subpart F.
- WTP assisted a Canadian-based healthcare company in expanding its operations into the U.S. In determining the appropriate entity through which the Canadian company was to operate in the U.S., we navigated and advised on the withholding and transfer pricing rules of the Internal Revenue Code relating to certain cross-border intercompany payments and the so-called “Branch Profits Tax.”
- WTP provided tax planning to a U.K.-based hotel franchisor in establishing its U.S. operations. This engagement involved analyzing income tax treaties between the U.S. and various countries with respect to the creation of a permanent establishment, intercompany management fee and royalty payments, and the deployment by the U.K. company of a number of non-U.S. citizen executives and other employees into the U.S.
- WTP provided tax planning and general corporate advice to a Japan-based stem cell research and development company starting business in the U.S. The Japanese company requested our advice on U.S. federal, state and local tax rules and regulations, and the process involved in establishing a U.S. entity for which some of its Japanese employees would be sent to work. We helped the company navigate these complex rules in a manner that streamlined their U.S. operations without triggering undue U.S. tax.
For individuals, we have provided international tax advice to clients in connection with the following:
- Outbound and inbound compensation and investment
- Analysis of the impact of U.S. income tax treaties
- Tax controversies involving foreign assets and income, and
- Filing information forms and returns relating to offshore bank and other investment accounts.