New Section 59A: Base Erosion and Anti-Abuse Tax (the "BEAT") 2019 | Networking Seminars Inc. | 7 March 2019 |

The BEAT presents challenges for common business structures used by both non-U.S. based and U.S.-based multinationals. Non-U.S. corporations with income effectively connected to a U.S. trade or business and related party payments may be subject to the BEAT, requiring a careful analysis of the new tax rules.

• The impact of new §59A on non-U.S. Based and U.S.-based multinationals
• Analyzing the reporting requirements and exemptions of the BEAT
• Identifying transactions that may be subject to the BEAT
• Determining modified taxable income subject to §59A
• Tax rate application and methods of calculating the BEAT
• Tax planning tips limiting exposure and reducing taxable income subject to the anti-abuse tax

The BEAT targets U.S. tax-base erosion by imposing an additional tax liability on certain corporations that make payments to related foreign persons by adding back to taxable income certain deductible payments made to such foreign persons. The BEAT amounts to an alternative minimum tax on a taxpayer’s taxable income regardless of the tax benefits arising from the payments to foreign persons. This modified taxable income is subject to a tax rate of 5% starting from the 2018 tax year and increasing to 12.5% beginning in 2025. Key topics include:

• Determine the applicability of §59A to U.S. based corporations and non-U.S. affiliates
• Methods in calculating modified taxable income and applicable tax rates
• Identifying transactions or operations subject to the BEAT
• The impact of net operating losses in determining modified taxable income
• Recognizing the interaction of BEAT with other new tax law provisions
• Tax planning methods in reducing or limiting BEAT exposure

2019 Speakers

William K. Norman
Partner in the law firm of Ord & Norman in Los Angeles, California

Our International Tax Group:

Bill Amon
Managing Director at Anderson Tax in Los Angeles

John Apuzzo
International Tax Senior Director located in the Los Angeles office of PricewaterhouseCoopers LLP

Sherif Assef
Principal at KPMG LLP

Andrew Bernard
Managing Director at Andersen Tax in Philadelphia

Rivi Biton
International Tax Specialist in International Tax Quantitative Services in New York

Trevor Blumenfeld
Manager at the KPMG LLP in New York, NY

Devon M. Bodoh
Principal in KPMG’s Washington National Tax Corporate

Christopher Booth
Director in the International Tax Service Line with Deloitte in San Diego

Anne Bouse
Senior Manager at Ernst & Young LLP in the International Tax Services practice in Chicago

Howard Braithwaite
Director in KPMG’s Philadelphia International Tax

Margaret Brown
Member of Ernst & Young’s Transfer Pricing and Economics

Greg Bryant
Lawyer and Certified Public Accountant

Oscar Burakoff
Principal Economist in DLA Piper's Tax practice, based in San Diego

Kevin Burke
Principal in Ernst & Young’s International Tax Services group in Boston

Sarah Busker
Executive Director in Ernst & Young’s Houston office

Amy Cannefax
Sr. Manager in the Federal Tax Practice at KPMG LLP

Rui Che
Senior Manager in the Philadelphia office of KPMG LLP’s Transfer Pricing Practice

Chuck Chubb
Managing Director at Anderson Tax in Philadelphia

Robert a. Clary II
Partner in the Law Firm of Mcdermott Will & Emery Llp and Is Based in the Firm's Chicago Office

Jason R. Connery
Principal at KPMG LLP in the International Tax group of the Washington National Tax

Brendan Cox
Partner at Ernst & Young LLP, in the East Central Sub Area Federal Tax Practice

John Crucs
Managing Director in the International Tax Group at Kpmg Llp

Paul Dau
Counsel in the Law Firm of Mcdermott Will & Emery Llp Based in the Firm's Silicon Valley Office

Steven M. Davis
Principal in the International Tax Services group at KPMG LLP’s New York City

Ghansham Dhanak
Director in the International Tax Services practice in the New York office of PricewaterhouseCoopers LLP

Greg W. Featherman
Senior Manager in KPMG’s Washington National Tax Corporate practice and a member of KPMG’s Washington National Tax International M&A Initiative

Andrew R. Fisher
Director in Deloitte Tax LLP’s U.S.

Paul Flignor
Principal Economist with DLA Piper's Tax group based in Chicago

Stephen C. Fox
CPA, co-author of "Passive Foreign Investment Company Rules are Complex and Unforgiving" in Journal of Taxation of Investments

Maureen Garcia
Member of Ernst & Young Llp’s International Tax Services (Its) Practice

Victor Gatti
Principal with KPMG’s New York Financial Services Practice (NYFS) and the New York Merger and Acquisitions Practice

Christine Groen
Senior Associate in Grant Thornton LLP’s Melville office

Joel Gross
Senior Manager in Kpmg’s International Tax Practice Based in Boston

Alexander Hanhan
Tax Managing Director with the International Corporate Services group in KPMG’s Houston office

Mike Hardgrove
Partner in DLA Piper's Tax practice, based in Boston

Gwendolyn L. Hulsey
Member of the Tax Practice Group at Baker & McKenzie LLP in Houston

Jessica Joy
Managing Director, Dutt & Phelps

Vinay Kapoor
Principal in KPMG’s Economic and Valuation Services

Kathrine Kimball
Principal of Deloitte Tax LLP in the San Diego office

Neal Kochman
Member of Chaplin & Drysdale in Washington, DC

Nelly Korsun
Director at Duff & Phelps in New York Office

Jaclyn Obeso Kunkel
Manager in KPMG’s Philadelphia International Tax

Frank Landreneau
CPA and Director of International Tax Services at Pannell Kerr Forster of Texas

Elizabeth Lieb
Baker & McKenzie at Palo Alto CA.

Erin Lien
Member of Ernst & Young Llp’s International Tax Services Group in New York

Mike Lutz
Partner at Ernst & Young LLP in Boston

Neelu Mehrotra
Member of Ernst & Young LLP’s National International Tax Services Quantitative

Sean K. McFerson
Partner at Windess LLP in the firm’s Tax and Accounting Services practice

Robert J. Misey, Jr.
Shareholder at Reinhart Boerner Van Deuren in the firm's Tax and Business Law Practices and Chair of the International Practice

Evgeniya Mudrich
Manager in KPMG’s New York Financial Services Tax practice

Reza Nader
Member of Baker & McKenzie’s North America Tax Practice Group in the New York office

Zey Nasser
Member of Ernst & Young LLP’s International Tax Services practice and is based in San Francisco

Maruti Narayan
Of Counsel in the New York office of DLA Piper LLP

William K. Norman
Partner in the law firm of Ord & Norman in Los Angeles, California

Ben Olivas
Partner in the International Tax group at DLA Piper in San Jose, CA

Melinda R. Phelan
Member of the management committee for Baker & McKenzie's North America Tax Group

Peter J. Scalise
Serves as the Federal Tax Credits & Incentives Practice Leader for the Americas at Prager Metis CPAs, LLC

Caren S. Shein
Managing Director at KPMG LLP’s National Tax Office in Washington, DC

Moshe Spinowitz
Skadden

Paul Tadros
President at DSN Consultants based in Atlanta, GA

Jay Tata
Leads KPMG’s International Corporate Services tax practice in New England

Gabriel Taubenfeld
Senior Manager in Ernst & Young LLP’sInternational Tax Services

Brian Trauman
Partner and tax lawyer at KPMG LLP

Eric Tyan
International tax senior manager at KPMG LLP

Miquel (Mike) Valdes
Specializes in Latin America and Caribbean

Nelson Valentine
Currently a Senior Manager at Deloitte Tax LLP in our New York International Tax Services Group

Theodor van Stephoudt
Economist with SNR Denton in New York

Steve Weerts
Partner in the Tax practice of White & Case in Los Angeles

John T. Woodruff
Partner in the Law Firm of McDermott Will & Emery LLP and is based in the Firm’s Houston office

Steven C. Wrappe
Principal in KPMG’s Economic and Valuation Services

Katherine (Kathy) Wu
Executive Director with Ernst & Young LLP’s Tax Services practice in Iselin, New Jersey

Raymond Wyeth
Partner at Grant Thornton in New York

Raymond P. Wynman
Director of Global Tax Management’s International Tax Practice

David Young
Senior Manager in the International Corporate Services tax practice in New England.

Mark Young
Managing Director with Alvarez & Marsal Taxand, LLC in Houston

Thomas H. Young
Partner in the Law Firm of McDermott Will & Emery LLP and is based in the Firm's Chicago office

Janette Zive
Partner with the International Tax Services team at PricewaterhouseCoopers LLP Canada in Toronto

Joanna Zong
Tax Senior Manager in Kpmg’s New York Financial Services, Federal Tax Practice