Skip to Main Content
 

David Rosenbloom Speaks to Law360 on "Closing Gaps In GILTI Opens Up Authority Questions"

June 19, 2019, Law360

Closing Gaps In GILTI Opens Up Authority Questions

Recent rules on the international provisions of 2017's tax law attempt to resolve gaps and contradictions in the legislation's framework for global intangible low-taxed income — and in doing so, raise questions about whether they exceed regulatory authority.

The regulations, released by the U.S. Department of the Treasury on Friday, include a new proposed rule creating a high-tax exception to the Tax Cuts and Jobs Act 's GILTI provision, as well as final rules for determining the GILTI tax liability for partnerships with interests in foreign entities.

. . . . .

David Rosenbloom, director of New York University School of Law's international tax program and a member of Caplin & Drysdale Chtd, said Treasury had the authority to make the exception, but not necessarily to make it an election.

“I don't see any authorization for that in the statute,” he said of the election. “I didn't see Treasury justifying the electivity. They do a reasonable job of justifying the rule, but there's two pieces to this rule.”

Read the full article at Law360.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at www.caplindrysdale.com.
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
202.862.5000
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2019 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)