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. 

Name: Jessie Coleman

What she does: As a transfer pricing principal of the Washington National Tax Group of

KPMG US, Jessie provides services related to transfer pricing planning, documentation and controversy, and international tax policy.

Organization: KPMG

Words of wisdom: “I think we have a lot of countries, and our own Treasury has been very clear on this, that are very committed to making Amount B a success.”

Connect: LinkedIn 

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☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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.

Name:  Vikram Chand

What he does:  Dr. Vikram Chand is an associate professor of law at the University of Lausanne (UNIL) Switzerland. He also serves as the program director of UNIL’s Executive Program in Transfer Pricing, the managing editor of the Kluwer International Tax Law Blog and an international tax trainer for the OECD.

Organization:  University of Lausanne

Words of wisdom: "We could expect Pillar Two to come into the legislation of a lot of European member states in 2024 at maximum by 2025. … Historically all the low tax countries like Switzerland or Hong Kong or even Jersey, they have announced adoption of the Pillar Two initiative."

Connect:  LinkedIn

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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 [email protected] to see how you can get involved. 

Name: Elizabeth Stevens

What she does: Elizabeth is an international tax attorney, experienced in international tax planning and advocacy for multinational corporations. She is the former chair of the ABA Transfer Pricing Committee and co-founder of TP C2B. 

Organization: Caplin & Drysdale  

Connect: LinkedIn

Name: Niraja Srinivasan

What she does: Niraja assists law firms, multinational companies and tax authorities with expert economic analysis to resolve transfer pricing disputes. She has 25 years of corporate and consulting leadership experience and is the current chair of the ABA Transfer Pricing Committee. 

Organization: NERA

Connect: LinkedIn

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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. 

Name: Katy Stone

What she does: Katy is a tax associate in Skadden’s Palo Alto office. She handles the tax aspects of high-profile capital markets, M&A and other corporate transactions, with a strong focus on the technology and energy sectors. Katy regularly represents companies and individuals in tax controversy matters and is admitted to practice before the U.S. Tax Court.

Organization: Skadden

Words of wisdom: “I think it's deeply impactful to do this kind of work and protect those very valuable dollars for low-income taxpayers.”

Connect: LinkedIn 

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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.  

Name: Lolade Ososami

What she does: Lolade heads the taxation and mining and metals teams at Udo Udoma & Belo-Osagi. Her years of experience as a commercial lawyer in Nigeria, the largest emerging market in Sub-Saharan Africa, has equipped her with a vast knowledge of the legal and regulatory framework for international investment in the region.

Organization: Udo Udoma & Belo-Osagie

Words of wisdom: “When [African countries] start to see that there's enough to go around, and if we can come together and be a unified force, then perhaps our place at the table when it comes to international tax issues would gain more respect.”

Connect: LinkedIn 

Name: Zach Pouga

What he does: As a partner in the International Tax Group at Ernst & Young, Zach focuses on U.S. companies with a presence in Africa and Africa-based companies looking to expand to the U.S., often working in tandem with the African Union and regional governments.

Organization: Ernst & Young

Words of wisdom: “The thing I usually try to push is you don't have to go against the rules necessarily, or you don't have to be on the side. Sometimes being in the rules and understanding them and applying them to your context can actually be more beneficial than being against the rules or being on the sidelines.”

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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.

Name: Lolade Ososami

What she does: Lolade heads the taxation and mining and metals teams at Udo Udoma & Belo-Osagi. Her years of experience as a commercial lawyer in Nigeria, the largest emerging market in Sub-Saharan Africa, has equipped her with a vast knowledge of the legal and regulatory framework for international investment in the region.

Organization: Udo Udoma & Belo-Osagie

Words of wisdom: “Success is relative. It depends on which side of the fence you're standing. You have all these audits, all this controversy. The taxpayer is spending a lot more money trying to resolve disputes. So is tax really being collected, even? I don't know if that looks like success.”

Connect: LinkedIn 

Name: Zach Pouga

What he does: As a partner in the International Tax Group at Ernst & Young, Zach focuses on U.S. companies with a presence in Africa and Africa-based companies looking to expand to the U.S., often working in tandem with the African Union and regional governments.

Organization: Ernst & Young 

Words of wisdom: “The thing I hear a lot is that the government doesn’t have the manpower to apply the rules they don’t understand, and the effectiveness of which they are not sure of. So it’s a very deliberate governmental decision to try to allocate resources to understand these complex policies that are coming out when they have no assurance of the effectiveness in actually raising funds for them.

Connect: LinkedIn 

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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. 

Name: James Anderson

What he does: As head of Skadden’s European tax practice, James  Anderson counsels on the full range of public capital markets transactions. Under his leadership, the firm’s European tax team has received numerous accolades for their work across numerous transactions.

Organization: Skadden

Words of wisdom: “We're at the beginning of a formation of a new universe, and […] it's a chance for [newcomers] to shine if you can get out ahead of the curve knowing the rules better.”

Connect: LinkedIn

Name: Alex Jupp

What he does: Mr. Jupp is a London tax partner who advises a wide variety of clients in transactional and non-transactional matters on U.K. and cross-border tax matters.

Organization: Skadden

Words of wisdom: “I would love for there to be a huge lobbying effort to say, ‘If you bring in Pillar One, can you get rid of DPT?’ That would be fantastic.”

Connect: LinkedIn

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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 VITA, GetYourRefund and 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 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.

Name: Jaclyn Roeing

What she does: Jaclyn is a lawyer at Skadden whose work focuses on tax controversy and litigation. She dedicates a significant amount of her time to pro bono work, representing the interests of low-income individuals and volunteering her time with Community Tax Aid in Washington, D.C.

Organization: Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates

Words of wisdom: “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. And there are plenty of those opportunities in tax.”

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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!

Name: Mike McDonald 

What he does: An executive director of the National Tax Department at Ernst & Young and a former senior economist at the U.S. Department of the Treasury, Mike is an expert on developments in transfer pricing over the past 20 years.

Organization: Ernst & Young

Words of wisdom: ”Realistic alternative is a tool that allows countries or taxpayers to take a step back and say, Hold on a second, does this pass the smell test? Because if something doesn't pass the smell test, odds are a realistic alternative framework can identify that.”

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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. The insights and views presented in GILTI Conscience are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney, nor does tuning into this podcast constitute an attorney-client relationship of any kind.

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.  

Name: Roger Brown

What he does: Roger is the global head of Tax Strategy at Chainalysis. He has 30 years of international tax experience for multinational enterprises in financial services, technology, blockchain and other industries. Roger has worked with law firms, accounting firms and the national office of the IRS. 

Organization: Chainalysis Inc.

Words of wisdom: “There are all these [technologies] now that are leaning into these traditional business processes, that are far more than just payments.

Connect: LinkedIn

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to GILTI Conscience on Apple Podcasts, Spotify, Google Podcasts, or your favorite podcast app.

☑️ Let us know what topics you would like to hear about on GILTI Conscience by emailing our executive producer at [email protected].

GILTI Conscience is a podcast by 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.