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Transfer Pricing Answer Book (2012 Edition)

 
Author(s): Rocco V. Femia, David B. Blair, Kevin L Kenworthy, George M Clarke
Practice Area: Tax
Date: Mar 2012 i Other versions can be found in the Related Items tab.
ISBN: 9781402417535
PLI Item #: 38524

The phenomena of increasingly global business enterprises with valuable intangible property expose companies to transfer pricing enforcement by different countries around the world.  Many of these countries are increasingly aggressive in enforcing their local transfer pricing rules, as they attempt to protect their tax revenue base.  To avoid double taxation of the same income in this environment, companies often are required to deal with the highly specialized, bilateral treaty-based competent authority process developed to prevent double taxation at a time when trade mainly involved only two established countries.  Even more challenging today, companies and tax authorities increasingly are faced with the potential for multiple taxation of the same income, as supply chains cross many borders and as the tax authorities of emerging countries become players in the global taxation process, and the resulting stresses, strains, and limitations of the bilateral treaty-based competent authority process have become more apparent.

In light of the high-dollar risks presented by the increased enforcement efforts of tax authorities worldwide, the complexity of the ever-changing, inherently uncertain transfer pricing standards, and the continually evolving business models of businesses adapting to the constantly changing global economy, companies need practical guidance to permit them to develop and defend their transfer pricing strategies. 

Transfer Pricing Answer Book 2012 gives companies such guidance by discussing all aspects of transfer pricing, from initially planning a transfer pricing strategy, to alternative ways to defend the strategy from attack by two or more tax authorities, to resolving a case before competent authorities, to bringing a transfer pricing case to court.  The book’s non-technical discussion is presented in a question and answer format that will appeal to readers regardless of their prior level of experience or familiarity with taxes in general and transfer pricing in particular. 

Transfer Pricing Answer Book 2012 is an invaluable resource for company executives and their advisors who are seeking to better understand this important area of tax law that has become such an important economic facet of so many businesses.

David B. Blair is a partner in Crowell & Moring's Tax Group. Mr. Blair's practice is in the area of federal tax litigation and controversy. With over twenty years of tax litigation and trial experience, he has handled large tax litigations in the areas of transfer pricing, foreign tax credits, partnerships, tax-exempt bonds, consolidated returns, excise taxes, employment taxes, and tax accounting issues. He is also active in pro bono litigation. Where clients sought resolution short of litigation, Mr. Blair achieved outstanding results through alternative dispute resolution procedures, including the Internal Revenue Service's (IRS) Fast Track Settlement program. He also has extensive experience in handling tax controversies before IRS Exam, Appeals, National Office, and Advance Pricing and Mutual Agreement program (APMA).

Mr. Blair is an active member and former Chair of the Tax Section of the Federal Bar Association.  He is a member of the ABA Section of Taxation, and a Fellow of the American Bar Foundation.  From 2005 to 2007, Mr. Blair served as an Adjunct Professor of tax at the Georgetown University Law Center.  He frequently speaks on a variety of tax issues and is active in the J. Edgar Murdoch Inns of Court hosted by the United States Tax Court.  Mr. Blair is ranked by The Legal 500 (2007-2011).  Prior to joining Crowell & Moring, Mr. Blair was a Trial Attorney with the United States Department of Justice, Tax Division (1990-1995).  He also served as a Law Clerk for the Hon. Frank M. Johnson, Jr. of the United States Court of Appeals for the Eleventh Circuit.  Mr. Blair received his law degree in 1989 from Cornell Law School (magna cum laude) and his undergraduate degree in 1985 from Georgetown University.

 


George Clarke is a Member with the law firm Miller & Chevalier in Washington, D.C. He practices in the areas of white collar, internal investigations, and tax and focuses on the defense of civil and criminal tax matters (including voluntary disclosure).  Other elements of his practice include civil tax litigation and the defense of non-tax federal criminal matters, including allegations of impropriety under the Foreign Corrupt Practices Act (FCPA) and other criminal laws of the United States.  Mr. Clarke has substantial experience advising clients on the defense of foreign tax and non-tax criminal investigations and the effect those investigations have in the United States (particularly with respect to U.S. tax liability accrual provisions such as FIN 48).

He has advised and defended clients in matters involving a variety of issues, including criminal tax fraud, summons enforcement and privileges, criminal immigration violations, the Tax Equity and Fiscal Responsibility Act (TEFRA) partnership provisions, Pasquantino wire fraud matters, foreign and other tax credits, extradition, the FCPA, intercompany pricing, class actions, federal excise tax, terrorism law, and military law.

Mr. Clarke has published numerous articles in national publications such as The International Lawyer, The Tax Executive, The Bureau of National Affairs, and World Corporate Finance Review.  He is a Certified Public Accountant (inactive) and, prior to becoming a lawyer, served as an enlisted infantryman in the United States Marine Corps.


Rocco V. Femia is a member of Miller & Chevalier Chartered.  Mr. Femia’s practice focuses on counseling and advocacy work on behalf of U.S. and foreign-based multinational enterprises. These projects typically involve complex, highly technical U.S. international tax, tax treaty, and transfer pricing issues often involving hundreds of millions or billions of dollars.  Mr. Femia has counseled clients with respect to the implementation of the new U.S. international tax rules enacted in the 2017 Tax Cuts and Jobs Act (TCJA), including the section 965 transition tax and the new GILTI and BEAT regimes.  Mr. Femia’s transfer pricing work has included the negotiation of Advance Pricing Agreements with the IRS and other tax authorities, the resolution of disputes through the Competent Authority or MAP process and the resolution of disputes with the IRS through the administrative Appeals process and litigation.

Mr. Femia is a former Associate International Tax Counsel at the U.S. Department of the Treasury, Office of Tax Policy.  While at the Treasury, Mr. Femia had responsibility for a broad spectrum of U.S. tax treaty and international tax regulatory and legislative matters. 

Mr. Femia writes and speaks regularly on a variety of international tax and transfer pricing issues, and is a former Adjunct Professor at the Georgetown University Law Center.  Mr. Femia graduated, magna cum laude, from Georgetown University Law Center in 1995.  He received his B.A. in Economics from Duke University in 1991.


Kevin Kenworthy is a partner with the law firm Miller & Chevalier in Washington, D.C.  He practices in the area of federal income taxation with an emphasis on tax litigation and other tax controversy matters.  Over his twenty plus years in practice, Mr. Kenworthy has represented large multinational clients in a variety of disputes before the courts and the Internal Revenue Service.  He has led or been a member of the firm’s successful litigating teams for many significant tax cases during this time.  In addition to litigating matters, Mr. Kenworthy regularly represents clients in the administrative phase of disputes with the IRS, including Appeals and other alternative dispute resolution procedures. 

Mr. Kenworthy is active in the American Bar Association’s Section of Taxation and is a former Chair of the Court Procedure and Practice Committee.  He frequently speaks publicly on a variety of tax topics.  Mr. Kenworthy has been ranked in Chambers USA 2008 - 2010.  Mr. Kenworthy is also active in the J. Edgar Murdoch Inns of Court hosted by the United States Tax Court.

He served as a Law Clerk to the Honorable William A. Goffe, Judge of the U.S. Tax Court, before joining Miller & Chevalier in 1987.