Reuters Quotes Tax Partner Elan Keller on Tyco's Challenge of $1 Billion IRS
NEW YORK, Aug. 12, 2013
NEW YORK, Aug. 12, 2013 /PRNewswire/ -- Swiss-based Tyco International is
challenging a $1 billion tax bill assessed by the IRS based on the Service's
view that cash transfers carried out within affiliates of the multinational
company were not debt giving rise to deductible interest payments, but instead
should have been treated as equity, giving rise to non-deductible dividends,
according to U.S. Tax Court documents. In a Reuters' interview, Caplin &
Drysdale's Elan P. Keller remarked, "I have seen the IRS go after these
structures very aggressively ... The IRS believes this is really low-hanging
fruit. Multinational corporations often structure intercompany capital
transfers as debt so they can deduct the interest. The tax community will be
watching this case closely as the results could have far-reaching affects on
cross-border corporate tax planning and capital structures."
About Elan P. Keller
Elan P. Keller is a partner in Caplin & Drysdale's Corporate, Business &
Transactional Tax, International Tax, Tax Controversies practice groups in the
firm's New York office. Clients seek his advice on matters involving tax due
diligence and structuring cross-border and domestic M&A transactions; the U.S.
aspects of inbound and outbound operations; transfer pricing; corporate
restructurings, reorganizations and distributions; capital markets and
structured finance transactions; infrastructure and leasing transactions; and
oil, gas, energy, and natural resource transactions. Mr. Keller can be
reached at 212.379.6030 or firstname.lastname@example.org.
About Caplin & Drysdale
For more than 45 years, Caplin & Drysdale has been a leading provider of a
full range of tax, tax controversy, and related legal services to companies,
organizations, and individuals throughout the United States and around the
world. With offices in New York City and Washington, DC, the firm also
provides counseling on matters relating to bankruptcy, creditors' rights,
exempt organizations, employee benefits, private client services, corporate
law, white collar defense, complex litigation, and political activity. For
more information, please visit us at www.caplindrysdale.com.
This communication does not provide legal advice, nor does it create an
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legal guidance in any specific situation, you should engage a qualified lawyer
for that purpose. Prior results do not guarantee a similar outcome.
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