Releases

The financial press is appropriately full of stories about deficit reduction and the role of corporate tax reform. From a government standpoint, these discussions relate to the need to close corporate loopholes that allow income to be earned in low-tax foreign countries. From a multinational standpoint, the issue is elimination of the competitive handicap that U.S. law imposes on U.S.-based multinationals. The current Obama Administration deficit reduction proposal anticipates a 7:1 return from further investment in IRS enforcement programs. Congressional hearings are addressing the potential benefits of a new "territorial" tax system. "The common element in all of these elements is the role of the U.S. transfer pricing provisions," advises Dallas transfer pricing lawyer Cym H. Lowell of Gardere Wynne Sewell LLP. "Our clients examine each of these developments in terms of achieving their global effective tax rate strategy," adds Lowell, who is the lead author of international tax and transfer pricing treatises of Thomson Reuters, which demystify the ambiguous world of transfer pricing. For more information, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.