Vinson & Elkins’ Post

UPDATES Q1 ISSUE A compilation of the latest news, laws, and developments in the field of finance. Equip yourselves, READ NOW! 👉https://lnkd.in/gfCk23XP UPDATES is a special publication by the FINEX Tax & Legal Committee. #FINEXPhils #updates #legalupdates #TaxUpdates #finance #LatestNews

On September 12, 2023, the Internal Revenue Service and Department of the Treasury released a third substantive piece of guidance, Notice 2023-64 clarifying the application of the new corporate alternative minimum tax. Prior guidance clarifying application of the CAMT was released in Notice 2023-7 and Notice 2023-10, but questions lingered for many taxpayers and practitioners seeking to understand the myriad of issues that come with the calculation, evaluation and understanding of this new tax. The Notice addresses a range of topics from the nuances of Applicable Financial Statement and Applicable Financial Statement Income determinations, to CAMT implications on consolidated groups and CFCs. This Alert summarizes the Federal tax accounting implications of new guidance contained in the Notice and highlights provisions that are of note to corporations expecting to be subject to the CAMT, including the prioritization of AFSs, new depreciation and amortization guidance in calculating AFSI, as well as allowable AFSI adjustments to prevent the duplication and/or omission of income. #Tax

Some further points that have been raised with me: 1. Except for extraordinary items under 1.706-4, which is a special limited rule, and simultaneous transactions, such as those in Turner Broadcasting (Tracinda), https://lnkd.in/eCgdEr4z,  there is no authority yet (IRS ruling or case law that I can find) which says that one transaction occurs before another on the same single day. Not that it cannot happen, it is just that there is no general principle establishing that that I know of. (I don’t count, and never had counted, any possible CC:Corp letter rulings because those never contain any legal reasoning at all to support its rulings). 2. Some may argue that the step transaction doctrine can respect the ordering of the steps, and that the steps that occur there can occur on the same day. Thus, it is argued, one can cite those cases as authority for respecting the ordering on the same single day. But those cases did not and do not turn on something having to happen on a particular day before or after another event occurring on the same single day. Without a simultaneous transaction or a transaction with an extraordinary item, there is no authority type rule-just logic one would argue. 3. Maybe there should be such a rule and maybe one can convince a court that there is one today, but I cannot find such a rule right now. Of course, one can do a rescission and if respected you can change the ordering, but that is a different situation. 4. Now documents frequently state the ordering and when things happen. In fact, in one of the two cases I discuss in the short TN article, the document’s ordering for two same single day events was respected in the court’s order. And I say in the article that if that court ends up holding what the judge says in the order, then it has broken new ground authority wise. 5. The ordering of events in documents is always going to be favorable to the drafter’s position and sometimes those whereas clauses may be true and sometimes they may not be true. 6. I think that if you really need to have the order of events respected as separate on the same day in a certain ordering, under today’s law do them on two separate consecutive days. Or have the IRS write a rule saying so. Otherwise you are just relying on logic and common sense which is often not enough.

The Master file in transfere pricing is intended to provide three critical aspects in a global perspective of the firm. 1. Global economic, 2. Legal, financial and 3. Tax context. https://buff.ly/3luiskj

Law firms benefit significantly from the interest rate increases, as most law firms hold significant amounts of client monies in interest-bearing accounts. Ross Bond, an Indirect Tax Manager at PKF Francis Clark discusses how the recent rise in interest rates announced by the BoE, could be good news for those with funds accruing interest in bank accounts. https://ow.ly/y0Mt50PKxFV #VAT #lawfirm #tax #interestrates

If nothing else, the latest drama involving the client-linking process should cause this issue to be at the forefront of the conversations between the ATO and the accounting and legal professions. This is a matter to which the new Commissioner of Taxation, Rob Heferen, should give his urgent attention. The ATO does commit a good deal of senior resources into the consultation process with the professions (accounting, legal and others). This is all good and to be commended. Full article here: https://bit.ly/499H1te #ATOConsultationReview #ClientLinkingConcerns #CommissionerPriorities

👉 When we try to fight axiomatic, rule based systems like capitalism, taxation, or the legal system, the objection must be on the INTENT OF A RULE / LAW, otherwise organizations will just follow with existing framework and prove logically that you deserve nothing!

Discover how 4 expected tax law changes could affect your financial plan—and learn adjustments you can make to continue funding what matters most.

Discover how 4 expected tax law changes could affect your financial plan—and learn adjustments you can make to continue funding what matters most.

Discover how 4 expected tax law changes could affect your financial plan—and learn adjustments you can make to continue funding what matters most.