With the U.S. Justice Department taking an ever-closer look at cross-border transactions and their tax implications, International Tax Controversies: A Practical Guide provides a detailed roadmap to how to prepare for a tax audit that involves an international component. This book covers special issues often present in international tax disputes, such as questions regarding the application of attorney-client privilege and other protections in the cross-border context; procedures available where relevant documents, witnesses, and other information are held abroad; and possible dispute resolution mechanisms available in international tax disputes involving tax treaties and transfer pricing.
International Tax Controversies describes the process of how an international audit proceeds, including:
- How the IRS audit team is chosen
- What the limits are of the scope of the examination
- The type of examination that will be conducted and the kinds of documents that will need to be provided by the taxpayer and third parties
- The kinds of enforcement procedures that may be brought
In international tax situations, there are often conflicting positions taken by the U.S. Internal Review Service and a non-U.S. tax authority. Tax treaties containing mutual agreement procedures (MAPs) are often invoked to protect the taxpayer from paying double taxes. International Tax Controversies
describes the process by which MAPs may be invoked and a binding resolution created. It discusses the process of obtaining advance pricing agreements (APA) to protect the taxpayer from excessive transfer taxes. The book also describes the many tax information exchange treaties and agreements that the U.S. has entered into, and the impact they have had on the U.S. taxpayer.