GILTI Conscience

Machado Meyer tax partner Fernando Colucci joins Skadden's David Farhat, Loren Ponds, Eman Cuyler and Stefane Victor to explore Brazil's historic shift from a 27-year formulaic transfer pricing system to full OECD compliance. As he explains, “We moved from a very strict, very formulaic approach to a simple, a direct import of the arm's-length principle.” Tune in for his insights on dramatic changes facing multinational enterprises and Brazil's notorious 75% penalty system that raises the stakes on compliance decisions.

When goods, services and rights go back and forth within a company, how do you attribute profit or loss to one part of the company versus another? Former OECD head of tax treaties and transfer pricing Mary Bennett and EY's Mike McDonald join this episode of “GILTI Conscience” for a detailed discussion on the attribution of profits to permanent establishments. Skadden tax partners David Farhat and Nate Carden and associate Stefane Victor host the discussion, which explores, among other topics, critical differences between Articles 7 and 9 of the OECD Model Tax Convention and why these distinctions matter for multinational businesses.

Amount B is designed to streamline transfer pricing for baseline distribution and marketing companies worldwide, but “we're apparently in a world of complexity and controversy,” says Jessie Coleman..A principal at KPMG, Jessie joins Skadden attorneys Nate Carden, David Farhat, Eman Cuyler and Stefane Victor to discuss everything there is to know about the current and future status of Amount B. Together, they explore questions of scoping – will jurisdictions agree that an entity is in-scope? – and who's signing on to Amount B, as well as tensions that may arise over how to handle disputes. For companies that would likely be in-scope when implementation launches, Jessie suggests they prepare by monitoring their assets-to-sales, which will drive where they fit in the Amount B matrix. “I think knowing the unknown right now is really important,” she observes.

In our second episode in our spotlight series focused on celebrating diversity, GILTI Conscience's David Farhat and Stefane Victor are joined by colleagues Brian Breheny and Jordan Schwartz for an earnest dialogue on DEI in big law. The guests discuss some of the challenges they faced as gay professionals, including their experiences coming out at work and questions they faced, as well as their efforts to advocate for diversity in the workplace and embrace its importance.

“You want people to be themselves. You're going to get the most productivity, the most career longevity from somebody that's happy about being where they are,” says De Lon Harris. In celebration of Pride Month, Skadden tax senior advisor De Lon Harris joins Eman Cuyler and Stefane Victor on “GILTI Conscience,” where he discusses his life and career as a gay professional. De Lon talks about his 30-plus years at the IRS and the different roles he took on, as well as his experience as a gay person working in government service. He also touches on mentorship, including the importance of seeking diversity in mentors.

The “GILTI Conscience” podcast team, led by partners David Farhat and Nate Carden, hosted Clark Armitage of Caplin & Drysdale for an in-depth conversation on the various methods for resolving cross-border transfer pricing disputes. Associates Eman Cuyler and Stefane Victor joined the discussion as well.

In this episode of the “GILTI Conscience” podcast, Skadden attorneys Eman Cuyler and Stefane Victor are joined by Jessica Hough, tax partner and head of Skadden's Washington, D.C. office, and Pam Olson, a tax policy consultant at PwC, both of whom have significant experience advising on issues related to tax policl.Tune in to this special episode in which two very distinguished women leaders within the tax community share their insights, experience and strategies for success, as well as how to lead with purpose.

On this episode of the “GILTI Conscience” podcast, Skadden attorneys David Farhat, Nate Carden, Eman Cuyler and Stefane Victor, are joined by colleagues Fred Goldberg and De Lon Harris, both of whom have had distinguished careers with the IRS. Tune in to hear Fred and De Lon share their thoughts, insights and predictions on the latest IRS projects and initiatives, as they talk about what's going on at the agency, new funding, enforcement priorities and tips for a more successful interaction with the IRS.Want more? Check out this prior episode with Fred Goldberg as he shares insights from his 50 years in tax law.

The evolving landscape of tax reforms in Japan and the broader Asia Pacific region presents a complex tapestry of challenges and strategic shifts.On this episode of the “GILTI Conscience” podcast, Skadden partners Nate Carden and David Farhat are joined by Samuel Gordon, an international tax partner at Deloitte in Japan to dissect tax implications, reform and concerns in this part of the globe.The discussion delves into the viewpoint of Pillar Two in Japan, as well as in the larger Asia Pacific region. The conversation also includes how Pillar Two is coming into play in other areas across the continent, including transfer pricing, training and knowledge base, and enforcement, as well as the effects on multinationals doing business throughout the region.

While tax insurance can be used in a variety of contexts, from M&A deals to regular tax planning scenarios, it is also relevant when it comes to transfer pricing. Recent developments have expanded the scope of tax insurance to cover multiple years of transfer pricing in returns in M&A deals, and the potential of seeing more transfer pricing insurance in the future is a strong possibility.On this episode of the “GILTI Conscience” podcast, hosts Nate Carden and David Farhat are joined by Skadden's Eman Cuyler and Stefane Victor and Yoav Shans of McGill and Partners to discuss the ins and outs of tax insurance including how it relates to transfer pricing, how a claim is initiated and insuring a position.

Pillar Two is no longer hypothetical. It's now time for Pillar Two “readiness.”In this episode of the “GILTI Conscience” podcast, hosts David Farhat, Nate Carden, Eman Cuyler and Stefane Victor discuss Pillar Two with Eric Sensenbrenner and Paul Oosterhuis. The group delves into the current state of Pillar Two, which has shifted from a source of concern to a challenge being actively addressed. Companies will have to remain nimble as changes and adjustments are likely during the implementation process.

Pro bono projects provide unique flexibility and opportunities for skill development, benefiting both the professional who takes on the work and the client. In this episode of “GILTI Conscience,” hosts David Farhat, Stefane Victor and Nate Carden present the next installment of the podcast's Spotlight Series, which includes a discussion with associates Jared Binstock and Sanessa Griffiths about the role pro bono work plays in tax and their experiences and motivations behind taking on this type of work.Both Sanessa and Jared provide examples of how to find pro bono projects that are a good fit for their practices. For Sanessa, finding causes that are aligned with her values and interests motivate her to say yes. Jared explains, "If I have time to work on it, I usually just say yes. I'm not picky because you never really know what issues are going to come up. It's always a learning experience."

In this episode of the “GILTI Conscience” podcast, David Farhat, Nate Carden and Stefane Victor are joined by Mike Gaffney of Atlantic Global Risk to talk about tax insurance and its role in addressing uncertainty in tax laws. Mike describes the workings of tax insurance, including the length of a typical policy, particularly surrounding a deal, and explored ideas such as deciding what covered tax position to insure and how various jurisdictions come into play.The conversation takes listeners through the impact that evolving international tax law has had on tax insurance; what multinationals need to consider when exploring a policy; recognizing risk, particularly surrounding BEPS; and tax insurance in an M&A transaction.

In this episode of the “GILTI Conscience” podcast, hosts David Farhat and Nate Carden are joined by associates Stefane Victor and Eman Cuyler, and Howard Sacarob, head of U.S. tax for the Royal Bank of Canada (RBC). Mr. Sacarob is also a member of RBC's diversity leadership council and an executive sponsor of the Pride Employee Resource Group (ERG) at RBC, where he works to make diversity and inclusion central to the firm's culture.The participants reflected on obstacles they've faced in the professional world as individuals with diverse perspectives and identities.They discussed the strides that companies are making to prioritize DEI and bring everyone into the conversation while also acknowledging the difficulties that diverse individuals still experience in the workplace. Tune in for this special DEI spotlight on “GILTI Conscience.”

In this episode of the “GILTI Conscience” podcast, Skadden partners David Farhat and Nate Carden, along with associates Eman Cuyler and Stefane Victor, discuss Pillar One's Amount B with Jessie Coleman of KPMG.In December 2022, the OECD issued documentation providing a much anticipated outline of Amount B, however, many uncertainties still remain surrounding scoping requirements and pricing.There is still much work to be done to address concerns around the drafted Amount B documentation and ensure the new framework will work for both developed and developing countries. However, many countries seem committed to making Amount B a success, including the U.S., as the Treasury has stated it's very open to input.

After a slow start, the Pillar Two initiative has gained momentum across the globe.“GILTI Conscience” hosts David Farhat, Nate Carden, Stefane Victor and Eman Cuyler spoke with Vikram Chand, a professor at the University of Lausanne, to discuss the latest Pillar Two developments and implications for international taxation.The conversation delves into the widespread adoption of Pillar Two, including in Europe, Asia and low-tax jurisdictions. They explore how the European directive has played a significant role in triggering the implementation of these rules by various countries, as well as the objectives and complexities of Pillar Two. Tune in to gain valuable insights into the evolving landscape of international taxation.

Though many opportunities exist for students interested in a career in tax law, there has been no clear environment for cultivating talent in the area of transfer pricing. Now, an ABA program offers up-and-coming professionals the opportunity to learn directly from leaders in this niche field. Launched in the midst of the pandemic in 2020, “Transfer Pricing: From Classroom to Boardroom” (TP C2B) seeks to provide students interested in pursuing transfer pricing careers with a multi-disciplinary “insider” look into how transfer pricing policies are designed and administered. With the help of mentors and enthusiastic volunteers, the program culminates in a capstone project at the end of each year-long session. Co-founders Elizabeth Stevens and Niraja Srinivasan joined the “GILTI Conscience” podcast to discuss why they started the program, how it has evolved and potential opportunities for expansion. Interested in volunteering? TP C2B is seeking mentors from all backgrounds who can help organize the capstone and take on other duties to help mentor the next generation of transfer pricing professionals. Send an email to abatpmentoring@gmail.com to see how you can get involved.

In this episode of GILTI Conscience, Skadden's Nate Carden, David Farhat and Stefane Victor continue the podcast's spotlight series with tax associate Katy Stone, who discusses the impact tax-related pro bono work has had not only on the lives of other but also on her career.Katy describes how pro bono matters — which she was introduced to early — frequently have a deeply human element and providing tax assistance often has a tangible influence on people's lives. “I think there's relief from some of these taxpayers in getting someone to explain the world of tax to them and build confidence on a go-forward basis that they're going to be able to handle this differently into the future,” Katy says.They also discuss how new associates can become involved in pro bono opportunities and how the work can help them expand their skill-set beyond their main practice.

In the second of this two-part GILTI Conscience series, our Skadden tax attorneys continue their conversation with Lolade Ososami, a partner and head of the tax team at Udo Udoma & Belo-Osagie, and Zach Pouga, a partner in the International Tax Group at Ernst & Young, on the myriad tax issues faced by Africa-based companies, companies with a presence in Africa and those doing business on the continent.Among other topics, the conversation touches on treaty networks, the role of taxation in general, implementation of tax laws in the various countries and the potential for a unified approach to tax across the African Union.Tune in to this second part of the discussion to hear our hosts and their guests discuss a wide array of topics on the rapidly evolving tax issues throughout the continent.

Conversations surrounding transfer pricing practices rarely span to include the myriad regulations throughout Africa. However, across the continent, there are vast distinctions between countries that are thriving under new international tax rules and others that are struggling to keep up. Lolade Ososami, a partner and head of the tax team at Udo Udoma & Belo-Osagie, says that transfer pricing has grown and evolved in Africa over the last decade. When the OECD released the BEPS action plans in 2018, it had a huge impact on tax practitioners, particularly in Nigeria. Zach Pouga, a partner in the International Tax Group at Ernst & Young, encounters transfer pricing in nearly every aspect of his work. He frequently deals with BEPS 2.0, Pillar One and Pillar Two when advising his clients regarding their presence in Africa, as well as helping governments across Africa understand the complexity of new tax rules. In this episode of the GILTI Conscience podcast, Lolade and Zach join our hosts to dive into the evolving world of international tax throughout Africa. From how U.S. multinationals operating in Africa approach transfer pricing to how Africa-based companies and regional governments are branching out, Lolade and Zach explore the complexities of transfer pricing and international tax.

In an effort to address tax issues surrounding the ever-growing digitalization of the global economy, the OECD proposed blueprint plans called Pillar One and Pillar Two. Though they were introduced in October 2020, implementation remains a challenge. In this episode of the GILTI Conscience podcast, Europe tax head James Anderson and London tax partner Alex Jupp join our hosts to discuss how the U.K. may be the first out of the gate in Europe to see some traction with potentially carrying out the Pillars. From international M&A compliance to political challenges and technical hurdles, James and Alex detail many of the uncertainties the Pillars face in today's climate, both in the U.K. and across the EU.Tune in to find out more about the future of Pillars One and Two in the international market.

For many low-income individuals,  filing taxes may be a daunting task, and many may even choose to avoid interacting with the IRS altogether due to negative experiences. However, not filing taxes may mean missing out on crucial refunds and benefits..  From low-income taxpayer clinics in communities to organizations and initiatives such as https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers (VITA), https://www.getyourrefund.org/en (GetYourRefund) and https://codeforamerica.org/ (Code For America), there are a multitude of pro bono opportunities for tax attorneys to get involved in to ensure taxpayers receive the benefits they deserve. According to Jaclyn Roeing, an attorney at Skadden who volunteers with https://www.communitytaxaiddc.org/ (Community Tax Aid) in Washington, D.C., “One of the key benefits of pro bono work is the opportunity to give back to your community and to use the skills you develop as a lawyer for clients that would otherwise not have representation at all, and that you might never get to engage with.”  Don't miss this Spotlight Series episode of GILTI Conscience as we sit down with Jaclyn to discuss how engaging in pro bono work as a tax attorney benefits both communities and attorneys, and how you can get involved.  

The OECD transfer pricing guidelines include DEMPE — the development, enhancement, maintenance, protection and exploitation of intangibles — as part of their efforts to deal with the legal status of both IP and economic ownership. Originally, the regulations stated that only legal ownership existed; DEMPE was incorporated to accommodate contributions made by entities other than the legal owner.  But how dependable and comprehensive are the DEMPE guidelines?  In this episode of “GILTI Conscience,” Mike McDonald, an executive director in the National Tax Department at Ernst & Young, joins our hosts to discuss whether DEMPE is supportable and more efficient than a traditional review of functions, assets and risks.  Mike also shares his perspective on recent developments in transfer pricing. Mike and the “GILTI Conscience” team look at varying approaches to the accounting practice — while some professionals believe that “functions, functions, functions” is the only sustainable tactic, others contend that the arm's length guideline is backed by sufficient valuations to outperform the alternatives. Mike delves deeply into the arguments for the arm's length approach. “I always thought one of the strengths of the arm's length principle, if done properly, is its inherent neutrality compared to all alternatives,” he says.  What do these developments and perspectives tell us about the future of DEMPE and transfer pricing? And what patterns has an expert like Mike seen over the past two decades? Tune in to find out!  

In this episode of the “GILTI Conscience” podcast, Roger Brown, global head of Tax Strategy at Chainalysis, joins our hosts Nate Carden and David Farhat to talk about the basics of blockchain. Roger explains what blockchain is, how tax rules apply to crypto and the field's potential benefits. Roger says that people regularly approach him with questions about blockchain and crypto — although the sector began forming many years ago, substantial uncertainty remains, especially regarding tax rules and policies. Roger therefore begins this overview with the basics. He notes that buzzwords like “bitcoin” and “blockchain” are commonly thrown around, but he emphasizes that they're only interconnected, not interchangeable. Bitcoin, which uses blockchain technology to secure transactions, is intended to be a peer-to-peer payment network, while blockchain is utilized for recordkeeping, tracking the movement of a digital asset (such as bitcoin) from virtual wallet to virtual wallet.   Roger also notes that the crypto space is more expansive and potentially beneficial than most people realize. “Crypto” refers to more than just payment applications. Technologies like Filecoin, a blockchain-based cooperative digital storage system, are focused on replacing business functions. Individuals and businesses alike can take advantage of such advances. But what important tax rules and policies should you understand before diving into this space? From a technical tax perspective, Roger says, the rules are nothing new. When you own cryptocurrency or any other digital asset, it's your property and, therefore, property rights still apply. If you're worried about taxation on cryptocurrencies as trading becomes more commonplace, Roger suggests investing in a partner company. These experts can help you understand how tax rules apply to crypto and ensure the IRS doesn't come knocking on your door for an audit.  

In this episode of the “GILTI Conscience” podcast, longtime Skadden tax partner Fred Goldberg joins our hosts Nate Carden and David Farhat to discuss his one-of-a-kind journey through the public and private tax sectors. Fred details the changes he's seen, his hopes for the future of the field and his advice for those looking to begin a career in tax law. As Fred notes, the tax system is the one set of regulations that every individual, family, business and nonprofit in the country must contend with each year. And for each, the challenge is the same: When you get your taxes right, everything is fine, but when you get them wrong, havoc ensues.  Many people who might consider a career in tax law are driven away by misconceptions about the work — e.g., a tax attorney can't be altruistic or give back to society. However, Fred believes tax is not just transactional — it's also relational: The field presents opportunities to collaborate, chase your passion and connect with others. The profession also needs a wide range of personalities and perspectives — you don't have to change yourself to fit some preconceived notion of an ideal tax attorney. A career in the tax field requires only creativity, listening skills and authenticity.  Fred hopes that mentorship, education and a willingness to shift perspectives can enable tax law to become more diverse and inclusive. He regularly shares the same advice with aspiring lawyers, young professionals already in the tax sector and people on the street: Tax law can make for an outstanding career. 

In this episode of the “GILTI Conscience” podcast, Bram Isgur, principal at Keystone Strategy, joins our hosts Nate Carden and David Farhat to talk about transfer pricing on an ex ante and ex post basis. They discuss the use cases for each method, how these methods differ across industries and why it's important to think about the bigger picture in preparing for unimaginable events and changes.  So, should you take an ex ante approach, where you look forward and try to figure out your pricing for events that have not yet occurred? Or do you take an ex post approach, where you wait to see what happens and work your way backward? Because there are pros and cons to each, it's difficult to give a definitive answer. However, Bram has some advice for companies grappling with these choices.  For example, many companies in the tech space either boom or bust, which often leads to tax controversy years later. On the ex ante front, when you're undertaking a transaction that involves risk, you have to write down what the risks entail — you can't rely solely on the statements put together by people who believed the company would succeed. In particular, you should have someone from the business side and someone from the tax side looking at your documentation. The ex ante approach allows you to talk through your strategy before risks come to pass.  On the ex post side, it's helpful to take a look at businesses that already failed. Instead of wondering if your company's success was inevitable, take a look at other companies that existed around the same time and would have been viewed as competitors. Examine their model and look at what happened to them. The ex post approach is often more convenient and accurate in certain cases. No matter which approach you take, it's vital to assess your situation, determine what's best for your business and stick to a plan of action. There are no perfect solutions, but consistency gives you a better position to deal with possible tax controversy down the road.

In this episode of the “GILTI Conscience” podcast, Kroll directors Ryan Lange and Kerim Keser and Skadden partner Johannes Frey join our hosts Nate Carden and David Farhat to explore the details of the German nonresident IP withholding tax. They discuss taxation questions that are still up in the air, how the rule could affect multinational corporations, the valuation of intellectual property (IP) registration and the best steps to take if you owe taxes under this law.  Originally implemented in 1925, the German nonresident IP withholding tax is coming back into the public eye after years of inactivity. The tax law states that if a foreign resident company has an IP registered in Germany, it may be subject to German nonresident taxation. However, uncertainty remains around authorities' ruling on the tax, the process for determining tax requirements and to whom the tax applies. At present, it remains unclear which types of multinationals are affected by this tax law. However, tax experts advise that companies with an IP registered in Germany cover their bases in order to avoid an audit, interest risk, liability risk and even corporate risk. This means companies should disclose their situation to German authorities. 

In this episode of the “GILTI Conscience” podcast, Skadden international tax attorney Paul Oosterhuis and associate Huzefa Mun join our hosts Nate Carden and David Farhat to discuss legislation, new regulations and the Build Back Better Act. They examine possible outcomes if the Build Back Better Act is not adopted, including changes in other tax regulations that could arise, as well as the potential impact of the “Two-Pillar Solution” on global taxation. Thehttps://www.congress.gov/bill/117th-congress/house-bill/5376 ( Build Back Better Act) has received a great deal of recent attention, but it doesn't look like we're going to see any movement on it in the near future. Many analysts therefore are focusing on what is likely to happen on the regulatory and pillars front were the bill not to pass. Paul suggests there would be a fair amount that the Treasury Department would want to consider with respect to the treatment of interest expense for U.S. multinationals. Possible changes include increased foreign tax rates, new check-the-box regulations and alterations in foreign tax credit regulations. Next, the guests discuss whether the OECD's two-pillar method will shift taxation away from standard international tax rules and bring about a global minimum level of taxation. Pillar One requires a physical presence in a country before that country can tax, and Pillar Two sets a minimum tax at a 15% rate. However, what happens if these pillars are enacted by other countries but not the U.S.? Paul and Hufeza expect that Pillar Two will not be difficult to enact in the EU, the U.K., Japan, Australia and many of the other major countries with multinationals. However, without Pillar Two, the U.S. would likely encounter problems for several years, unless major reform takes place. In addition, absent Pillar One, the U.S. is likely to face a period of chaos, unless it can “beta test” and see if a large group will adopt the pillar. Finally, the group discusses a few other statutes and regulations you should be aware of relating to the Build Back Better Act and international taxation.

In this episode of the GILTI Conscience podcast, Loren Ponds, Member at Miller & Chevalier in Washington, D.C., joins our hosts to share an overview of the tax legislative process. She discusses the outlook for current tax bills moving through the house and how changes and feedback are incorporated. Over the past two decades, most of the major tax legislation has gone through a reconciliation process where the bills start in the house. The review procedure includes a scoring process to ensure the bill will not increase the deficit before it can be passed.  Feedback also plays an important role in shaping the final version of a tax bill. Bills can be improved by inviting taxpayers to share the real-world implications of a change. In addition, asking the advisor taxpayer community to share critical feedback, with a clearly defined scope can be very helpful.  Predicting all of the fact patterns that might apply to a certain bill is impossible, but collecting feedback can help anticipate more of them, making a bill more comprehensive before it is passed.  Tax bills are gaining in popularity and controversy thanks to increased coverage from the media. This means more attention is given to how politicians approach tax legislation. This attention often focuses on how both sides of the aisle collaborate on tax policies that are easier to agree on, such as international tax provisions.   So how does this affect current legislation and how will Congress review the Build Back Better Act amongst the many pressing issues on their agenda?  Episode guest Loren explains, “There are a lot of other things that are on Congress's agenda besides tax. That said, the Build Back Better Act has some spending provisions that are a very high priority to the current administration.”

Diversity, equity and inclusion (DEI) make business sense for every professional community. For the tax practice, where creativity is essential, diversity elevates the practice, benefitting everyone from clients to the government and practitioners themselves. The tax community, however, lacks DEI for a host of reasons. At the heart of the problem is the ubiquity of whiteness and a pervasive insensitivity to otherness, whereby "others" must learn to navigate whiteness to survive. Maleness and whiteness often are used as synonyms for competence, which leaves women, people of color and LGBTQ+ attorneys constantly feeling compelled to prove themselves. These issues widen the inequality gap in the tax practice and further a discriminatory system. Such a system places undue pressure on diverse attorneys to succeed, not only for themselves but also to keep the gate open for those who follow. This burden makes the already-challenging practice of tax law even harder. How can you contribute to changing this reality and promoting diversity in the tax community?  In this episode of the GILTI Conscience podcast, Skadden partners David Farhat and Nate Carden kick start The Spotlight Series by talking with associates Eman Cuyler and Stefane Victor about both the challenges to and opportunities for promoting diversity within the tax law community. https://www.skadden.com/insights/podcasts/2022/02/spotlight-series-the-importance-of-diversity-equity-inclusion-in-tax-law (Click here for the full show notes, transcript, and video.) 

Understanding the 2022 OECD Transfer Pricing Guidelines and how it applies to guarantees and other financial transactions is essential for multinationals trying to manage intercompany lending and get their transfer pricing right. Granted, these companies have to fund themselves, whether through intercompany debt or guaranteed loans. They have to move money across borders, but how they do that, how the rules apply in different tax jurisdictions, and how everyone gets their appropriate piece of the pie can become very complicated. Profound transfer pricing questions tend to arise when deciding which credit rating applies to a subsidiary of a multinational because that can make a big difference on interest rates and tax implications. Another concern is that if a subsidiary has to get the stand-alone treatment because of the arm's length principle, what is the value of implicit support? Dealing with these issues opens a can of worms that questions the core of transfer pricing as we know it. For one, why should implicit support be a borrower-only analysis when a lender can also be a part of a group? Since implicit support applies to 'important subsidiaries,' are there non-important subsidiaries? The new guidelines attempt to address some of these issues related to the arm's length standard for cross-border transactions between associated enterprises. However, these guidelines don't apply equally across different jurisdictions. For instance, which rules should multinationals that have operations in the U.S consider, and in what scenarios do the new OECD guidelines come into effect?  In this episode of The GILTI Conscience podcast, hosts, Skadden Partners David Farhat and Nate Carden, Associate Eman Cuyler, and Clerk Stefane Victor sit down with Abraham (Bram) Isgur, Principal at Keystone Strategy. They discuss transfer pricing for cross-border intercompany loans and guarantees, the OECD guidelines, the controversies to expect and prepare for, ideas for engaging with tax authorities, and more.

The team at Skadden, Arps, Slate, Meagher & Flom LLP is always happy to debate multinational tax issues. And with the way things have been changing in the last two years, it's never been a better time to hit "record" on those conversations, and share them with fellow self-proclaimed tax nerds and those just getting started in the field. “Five years ago, we had a radically different international tax system from what we have today, which may change again significantly in the next year or two," says Skadden partner Nate Carden. “You have to constantly be thinking, How do the planning  I'm doing and the structures I'm creating align with my business objectives? Are they nimble enough to deal with tax rules that may evolve faster than my business?” Two major factors created this dynamic moment: COVID-19 prompted multinationals to rethink their tax strategies. And in the nearly two years since the World Health Organization (WHO) confirmed the pandemic, governments that poured money into enormous public funding initiatives are looking for ways to make back some of those expenses through taxes. Meanwhile, the public and lawmakers are paying more attention than ever to how multinationals are being taxed and using tax laws. In this introductory episode of GILTI Conscience, you'll meet your hosts: Skadden partners David Farhat and Nate Carden, associate Eman Cuyler, and clerk Stefane Victor, who is about to be admitted to the D.C. bar. Learn their backgrounds, specific areas of focus, and why they chose tax law. And get a sneak peek of what to expect from GILTI Conscience, including interviews, debates, and of course unapologetic nerding out. Click https://www.skadden.com/insights/podcasts/gilti-conscience (HERE) to read the full blog post for this episode or visit https://www.skadden.com/insights/podcasts/gilti-conscience (https://www.skadden.com/insights/podcasts/gilti-conscience)  

This is GILTI Conscience: Casual Discussions on Transfer Pricing, Tax Treaties, and Related Topics, a podcast from Skadden that invites thought leaders and industry experts to discuss pressing transfer pricing issues, international tax reform efforts, and tax administration trends. We also dig into the innovative approaches companies are using to navigate the international tax environment and address the obligation everyone loves to hate. If you like what you're hearing, be sure to subscribe in your favorite podcast app so you don't miss any future conversations. Skadden's tax team is recognized globally for providing clients with creative and innovative solutions to their most pressing transactional, planning, and controversy challenges. Additional information about Skadden can be found at http://www.skadden.com (skadden.com). GILTI Conscience is a podcast byhttps://www.skadden.com/ ( Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates). Skadden's tax team is recognized globally for providing clients with creative and innovative solutions to their most pressing transactional, planning, and controversy challenges. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.