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Clark Armitage Comments on GILTI and Subpart F
Caplin & Drysdale

Clark Armitage Comments on GILTI and Subpart F

Date: 6/8/2018

The Tax Cuts and Jobs Act's new international system has created a wrinkle for certain exempt organizations that are typically not subject to the corporate income tax.

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"The IRS has long ruled that Subpart F income is not unrelated business taxable income because it is like dividend income, which is expressly carved out of UBTI. That rationale and other bases for exclusion would seem to apply with equal force to GILTI inclusions," Clark Armitage of Caplin & Drysdale said.

But Armitage said "it seems unlikely Treasury would prioritize this particular exempt org issue, given the host of tougher issues they are addressing and the obvious analog of Subpart F precedent that is already out there."

For the full article, please visit MLex’s website (subscription required).

Excerpt taken from the article “Treasury, IRS Wrestle Over Exempt Group Rules for New Global Tax System” by Kat Lucero for MLex.

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