International Tax

Transfer Pricing: International Joint Ventures (Portfolio 6906)

  • This Portfolio discusses tax issues pertinent to international joint ventures.

Description

Tax Management Portfolio No. 6906, Transfer Pricing: International Joint Ventures, discusses tax issues pertinent to international joint ventures, including §482 issues, such as: control, hidden or “creeping” control, acting in concert, and burden of proof. Other tax issues discussed include those in the joint venture context, such as: choice of entity, formation of, and outbound transfers to, joint venture corporate and partnership vehicles (including the issuance of regulations under §367(a) and §367(d) for foreign corporations and §721(c) for partnerships), check-the-box rules, blocker corporations, piercing the corporate veil, sham treatment, taxation of operating income, reporting requirements, repatriation of income, foreign tax credit planning, and joint venture termination.

This Portfolio represents an update and amplification of the excellent work by Kenneth J. Krupsky, Esq., and Karl L. Kellar, Esq., Chapter 10: Transfer Pricing — International Joint Ventures of 890 T.M., Transfer Pricing: Alternative Practical Strategies.

This Portfolio may be cited as Handler, 6906 T.M., Transfer Pricing: International Joint Ventures.


Table of Contents

I. Introduction: “Control”
II. Legal Framework
III. Establishing Absence of Common Control and Arm’s-Length Transactions
IV. Hidden or “Creeping” Control
V. Joint Venture Pricing as an Arm’s-Length Comparable
VI. Additional Tax Planning Issues
VII. Summary of Key Reporting Obligations
VIII. Conclusions
handler-r-arnold-2015
R. Arnold Handler
Tax Consultant
R. Arnold Handler, Esq.
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