GILTI raises issues with downward attribution and compliance

    Changes to tax code on downward attribution complicate GILTI compliance

    The global intangible low-taxed income (GILTI) regime applies to 10% or more U.S. shareholders in controlled foreign corporations (CFCs) – entities in which these U.S. shareholders own more than 50% of the stock by vote or value. The law generally requires them to include their share of the net income of that CFC as taxable income.

    A recent change in tax law has made it so that downward attribution – attribution from a shareholder to a company it owns – applies in determining whether a corporation is a CFC and a shareholder is a 10% U.S. shareholder. 

    In a newly published article for Bloomberg Tax, CohnReznick’s Jeremy Swan, James M. Robbins, and Bradley Mainguy discuss: 

    - Changes to GILTI and key implications

    - Why downward attribution is a problem, especially for private equity funds

    - What options are available for entities affected by these changes

    Read their article at, or download the PDF below.


    Jeremy Swan, Managing Principal, Financial Sponsors & Financial Services Industry


    James M. Robbins, JD, LLM, Principal


    Bradley Mainguy, Senior Manager, National Tax - International Tax


    Subject matter expertise

    • Contact James James+Robbins
      James Robbins

      JD, LLM, Principal

    • jeremy swan
      Contact Jeremy Jeremy+Swan
      Jeremy Swan

      Managing Principal - Financial Sponsors & Financial Services Industry

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    Strategic Tax Issues for Capital Markets

    Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.