International Taxation

We often identify multiple opportunities to improve the international tax efficiency of client operations on our multinational client representations. We regularly provide advice for clients on significant international tax issues, including Subpart F, foreign tax credit, treaty-based issues, permanent establishment issues and U.S. trade or business issues. Our advice often forms the basis of our clients' FIN 48 positions. We also assist clients with structuring international merger and acquisition transactions, inbound, outbound, joint ventured or otherwise.

Permanent Establishment Matters

An emerging issue for all multinational entities is the rapidly expanding use of permanent establishment theories by tax authorities seeking to increase the tax base of their countries. The Organisation for Economic Co-operation and Development has revised many of the pertinent treaty commentaries to facilitate such theories and has even proposed a new approach to permanent establishment matters altogether. These developments have been used opportunistically for some time by certain OECD member countries, and now are used by many nonmember source countries. We have significant experience addressing permanent establishment issues.

Interface with Financial Accounting

Gardere's International Tax and Transfer Pricing Practice is at the forefront of a new practice area—the interface with financial accounting developed as a result of the enactment of the Sarbanes–Oxley Act and the efforts of the Financial Accounting Standards Board (FIN 48) to prevent inappropriate manipulation of taxation matters to achieve desired financial accounting results. In this new world, auditors are understandably vigilant in evaluating the controls and uncertain tax positions of their clients. However, we often find that auditors challenge their clients on tax issues that could have a material impact on the financial statement and may also propose a material adjustment which would impact client earnings. In such contexts, we are routinely asked to join in the discussion and broker an agreement between auditor and client. In certain cases, we are asked to seek advance agreement with respect to the issue. Our in-house tax leadership and accounting firm experience enables us to develop optimal solutions based on the needs of our clients. Discussions with auditors will be critical elements of future tax authority examinations. Our experience in handling such examinations frames our interface with auditors.

Transfer Pricing

At Gardere, we have been engaged in transfer pricing matters for many years. Our transfer pricing work is focused on finding solutions to specific client needs that we are confident can be successfully presented to global tax authorities. Gardere's team includes experienced lawyers with the skills required to handle major tax planning and controversies, together with common sense experience.

Mexico Matters

We have extensive experience handling transfer pricing planning and controversy matters (inbound or outbound) in Mexico. Our colleagues in the Mexico City office are experienced international tax and transfer pricing professionals. This practice is led by Roberto Arena and Fernando Camarena.