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11/20/2019
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 BloombergTax.com, or download the PDF below.
Contact
Jeremy Swan, Managing Principal, Financial Sponsors & Financial Services Industry
646.625.5716
James M. Robbins, JD, LLM, Principal
646.762.3033
Bradley Mainguy, Senior Manager, National Tax - International Tax
703.286.1707
Subject matter expertise
James Robbins
JD, LLM, Principal
Jeremy Swan
Managing Principal - Financial Sponsors & Financial Services Industry
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