The Supreme Court of India ("Supreme Court") on January 20, 2012 has overturned a 2010 decision of the Bombay High Court which ruled that Vodafone was liable to pay $2 billion to the Indian tax authorities because Indian capital gains taxes applied on share transfers between two non-resident entities, as long as the underlying assets transferred were within India.The case in question involved Vodafone International Holdings BV's acquisition of CGP Investments from Hutchison Telecommunication International Limited ("HTIL"). HTIL, a company incorporated in BVI, owned CGP Investments, a company incorporated in Cayman Islands, which through its Mauritius subsidiaries owned and/or controlled approximately 67% of one of India's leading mobile phone operators - Vodafone
Client Alert | January 20, 2012
As from January 1st, 2012, the French Finance Act has significantly increased the transfer tax applicable to the transfer of shares of non-real estate companies.BackgroundBefore the reform, transfer tax at the rate of 3% was due on the sale of shares of French companies, with the tax capped at € 5,000 per transfer with respect to the transfer of shares in sociétés par action (i.e.
Client Alert | January 20, 2012
While the members of the Eurozone are still struggling to find an adequate answer to the sovereign debt crisis and the stock markets are on a roller-coaster ride, the German economy is still doing remarkably well and continues to attract foreign investors from all over the world, notably China. At the same time, German lawmakers have not remained idle and have enacted a long-expected reform of the insolvency laws to facilitate corporate restructuring and debt-equity swaps.
Client Alert | January 10, 2012
Paris partners Jérôme Delaurière and Ariel Harroch are the authors of "De la nouvelle réforme des règles de lutte contre la sous-capitalisation" [PDF] published on January 9, 2012 in La Lettre Capital Finance, issue 1044, page 12 (www.capitalfinance.eu).
Client Alert | January 9, 2012
Paris partner Jérôme Delaurière is the author of "News Analysis: New Criteria Relevant to French Thin Cap Rules" [PDF] published in Tax Notes International, January 2, 2012, page 25.
Client Alert | January 2, 2012
According to a reform applicable as of January 1, 2012, the right to deduct interest due with respect to the purchase of shares in French target companies will be denied, unless the French acquiring company demonstrates -- by any means -- that (i) the decisions relating to such shares and (ii) the control over the target companies are effectively made by it or by a related party established in France.For the purpose of this reform, a related party can be a controlling company or an entity controlled by or under common control with the acquiring company. This new rule targets the purchase of shareholdings that are eligible for the French long-term participation exemption regime, i.e.
Client Alert | December 22, 2011
On November 3, 2011, the IRS published new proposed Treasury Regulations providing guidance relating to the taxation of income of foreign governments from investments in the United States under Section 892 of the Internal Revenue Code of 1986, as amended (the "Code"). The proposals update regulations that were first issued in 1988, and are welcome additions to an area of U.S.
Client Alert | November 4, 2011
On October 20, 2011, the IRS released the inflation-adjusted limitations applicable to tax-qualified retirement plans for 2012. Unlike for 2011, most of the limits are increasing. In addition to the impact of these limitations on tax-qualified retirement plans, the compensation limit under section 401(a)(17) of the Internal Revenue Code also affects the amount of severance pay that may be excludable from coverage under section 409A of the Code in certain circumstances.
Client Alert | October 20, 2011
On Tuesday, October 11, 2011, the Federal Reserve Board ("Fed") and the Office of the Comptroller of the Currency ("OCC") released for public comment and the Federal Deposit Insurance Corporation (the "FDIC") met in open session and unanimously approved and released proposed rules implementing the Volcker Rule, Section 619 of the Dodd-Frank Consumer Protection Act of 2010 ("Dodd-Frank"). The Securities and Exchange Commission ("SEC") voted unanimously to approve the proposed rule on Wednesday, October 12.
Client Alert | October 12, 2011
The Hiring Incentives to Restore Employment Act (the HIRE Act), in an effort to reduce the evasion of U.S.
Client Alert | August 9, 2011
Los Angeles associate Andrew Kreisberg is the author of "Guaranteed Payments for Capital: Interest or Distributive Share?" [PDF] published in the July 4, 2001 issue of Tax Analysts.
Article | July 4, 2011
Paris partner Jérôme Delaurière and associate Charlotte Prest are the authors of "News Analysis: French Tax Authorities Lose Battle on Stolen Data" published by Tax Notes International (page 176) on April 18, 2011.
Client Alert | April 18, 2011
On January 2, 2011, the United States imposed a two-percent excise tax on payments received by foreign entities for the sale of goods or services to the U.S.
Client Alert | March 30, 2011
Paris partner Jérôme Delaurière is the author of "News Analysis: U.S. Debt Push-Down in a French Subsidiary -- The Good and the Bad" [PDF] published in Tax Notes International on March 9, 2011.
Client Alert | March 9, 2011
The improvements in the German economy in 2010 have eased some of the restructuring pain, but have not prevented lawmakers from responding to certain deficiencies that are widely believed to have caused the financial crisis.
Client Alert | January 14, 2011
On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act). The Act extends the existing individual income tax rates and a number of expiring credits and other benefits, provides a few new temporary tax incentives, and establishes new gift and estate tax rates and exemptions.Extension of Expiring Tax ProvisionsThe Act extends the current income rates (which reach a maximum marginal rate of 35%) through the end of 2012 for all taxpayers.
Client Alert | December 20, 2010
During the course of the ongoing debates on the Finance Bill for 2011, the French Senate has recently adopted a new provision, resulting from two amendments adopted on November 18 and 19, 2010 respectively, which significantly extends the scope of the French thin capitalization rules. The new provision is presented as an anti-abuse provision with a view to preventing companies of the same group from circumventing the thin capitalization rules by securing bank loans via guarantees provided by a related company of the group.
Client Alert | December 7, 2010
The United States Labor Department has proposed an important amendment to its regulations defining fiduciary status under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). If the amendment is finalized in its proposed form, it will substantially expand the classes of service providers subject to ERISA's fiduciary duty and prohibited transaction rules.
Client Alert | November 1, 2010
On October 28, 2010, the IRS released the inflation-adjusted limitations applicable to tax-qualified retirement plans for 2011. Due to low inflation, the limitations have not changed from those applicable for 2010. In addition to the impact of these limitations on tax-qualified retirement plans, the compensation limit under section 401(a)(17) of the Internal Revenue Code also affects the amount of severance pay that may be excludable from coverage under section 409A of the Code in certain circumstances.
Client Alert | November 1, 2010
The Hiring Incentives to Restore Employment Act (the HIRE Act), in an effort to reduce the evasion of U.S. tax obligations through the establishment of accounts at foreign financial institutions (FFIs) or by holding assets through other, nonfinancial foreign entities (NFFEs), included provisions commonly referred to as FATCA.
Client Alert | October 7, 2010
Paris partner Jérôme Délaurière and associate Charlotte Prest are the authors of "De la conformité du droit d'enquête TVA avec la Convention EDH" [PDF] published in the October 2010 issue of the Revue du Droit Fiscal. For the full article please refer to issue number 40 of the Revue du Droit Fiscal.
Client Alert | October 7, 2010
As the State of California, and county and municipal governments, impose new and increased "fees" on companies and organizations, the question arises why aren't these illegal taxes? The bottom line is that, in many cases, they are. Governments have been engaged in attempts to circumvent legal prohibitions against the imposition of these so-called "fees" in order to attempt to plug budget deficits. Left unchallenged, they amount to hundreds of millions of dollars annually.
Client Alert | August 18, 2010
Los Angeles associate Andrew L. Kreisberg is the author of "The Effect of Transfer Restrictions on Continuity of Interest" [PDF] published by Tax Analysts on August 2, 2010.
Article | August 2, 2010
This alert covers the Dodd-Frank Wall Street Reform and Consumer Protection Act and its "Volcker Rule" provisions, prior to its passage in 2010.
Client Alert | July 12, 2010
Munich partner Hans Martin Schmid is the author of "Tauschgeschäfte bei Immobiliengesellschaften (Debt/Equity Swaps with Real Estate Holding Companies" [PDF] published in the July 8, 2010 issue of Immobilienmanager.
Client Alert | July 7, 2010
The American Jobs and Closing Tax Loopholes Act of 2010 (the "Bill") was passed by the House on May 28, 2010, and includes a provision that generally will tax a portion of the income and gains associated with "carried interests" as ordinary income. While the carried interest provisions of the Bill are substantially similar to legislation proposed last year, there are several important differences. The Senate is expected to take up the Bill during the week of June 7, after the Memorial Day recess.
Client Alert | May 28, 2010
On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (the "Act"). The Act fundamentally alters the U.S.
Client Alert | April 2, 2010
Gibson Dunn is closely tracking government responses to the recent turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.
Client Alert | March 17, 2010
On February 26, 2010, the Financial Crimes Enforcement Network (FinCEN) proposed revising the regulations implementing the Bank Secrecy Act to clarify which persons will be required to file Reports of Foreign Bank and Financial Accounts ("FBARs") and which accounts will be reportable. IRS Announcement 2010-16, 2010-11 IRB 1; IRS Notice 2010-23, 2010-11 IRB 1. The proposed rule would include a definition of United States persons and definitions of bank, securities, and other financial accounts in a foreign country. In addition, the proposed rule would exempt certain persons with signature or other authority from filing the FBAR. Finally, it would clarify that private equity funds and hedge funds are not "commingled funds" for which an FBAR filing
Client Alert | March 2, 2010
On February 1, 2010, the Obama Administration released the fiscal year 2011 Budget of the United States. This update summarizes the principal tax provisions identified in the Budget. The prospects for passage of these proposals is uncertain and depends in large part on the priorities of Congress and the Administration and the need for specific revenue offsets. Moreover, the inclusion of a proposal in the Budget does not necessarily provide a clear path to enactment. We invite your questions about specific details of these and any other tax-related provisions of the Budget.
Client Alert | February 3, 2010
As the German economy continues to suffer heavily from the consequences of the global financial crisis, 2009 saw the introduction of many changes in the fields of corporate, securities and banking law.
Client Alert | January 20, 2010
Paris partner Jérôme Delaurière is the author of "La TVA sur marge des marchands de biens est-elle conforme au droit communautaire?" [PDF] published in the January 18, 2010 issue of Option Finance (n°1060).
Client Alert | January 18, 2010
Paris partner Jérôme Delaurière is the author of "France Revises Transfer Tax Rules for Foreign Companies With French Real Estate Holdings" [PDF] published in January 8, 2010 edition of the Worldwide Tax Daily/Tax Analysts.
Client Alert | January 8, 2010
On December 21, 2009, President Obama signed the 2010 Defense Appropriations Act. Among other things, the Act extends the eligibility period for the COBRA premium subsidy from December 31, 2009 to February 28, 2010 and expands the maximum duration of the subsidy from 9 to 15 months. The longer subsidy period applies retroactively and will require plan administrators to provide a supplemental notice to affected individuals.BackgroundThe COBRA subsidy initially was included in The American Recovery and Reinvestment Act of 2009 (commonly known as the stimulus bill) and provided a temporary COBRA premium subsidy for employees who lost health plan coverage between September 1, 2008 and December 31, 2009 due to involuntary terminations of employment. Our February 24, 2009
Client Alert | December 22, 2009
Gibson, Dunn & Crutcher is closely tracking key legislative matters as the first session of the 111th Congress draws to a close. This update focuses on H.R.
Client Alert | December 8, 2009
Munich of counsel Christian Schmidt is the author of "Steuerliche Entwicklungen in Gesetzgebung, Verwaltung und Rechtsprechung zu Mitarbeiter- und Managementbeteiligungen in 2008" [PDF] published in the November 2011 issue of DStR.
Client Alert | November 17, 2009
On November 6, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009 (the "Act"). Among other things, the Act extends the net operating loss ("NOL") carryback period from two years to as much as five years for tax years beginning in or ending in 2008 or 2009. To pay for the extension of the NOL carryback period, the Act delays until 2018 the implementation of changes in interest expense allocations that were expected to increase the foreign tax credits that could be claimed by U.S.
Client Alert | November 10, 2009
On October 15, 2009, the IRS released the inflation-adjusted limitations applicable to tax-qualified retirement plans for 2010. Due to low inflation, the limitations have not changed from 2009. In addition to the impact of these limitations on tax-qualified retirement plans, the compensation limit under section 401(a)(17) of the Code also affects the amount of severance pay that may be excludable from coverage under section 409A of the Code in certain circumstances.
Client Alert | October 21, 2009
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.
Client Alert | October 15, 2009
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.
Client Alert | September 17, 2009
On September 16, 2009, the Internal Revenue Service released final regulations governing the U.S. federal income tax treatment of collateralized mortgaged-backed securities ("CMBS") held in a real estate mortgage investment conduit ("REMIC") vehicle.
Client Alert | September 17, 2009
On August 7, 2009, the Internal Revenue Service ("IRS") announced that it was further extending the deadline for filing Reports of Foreign Bank and Financial Accounts ("FBARs") for calendar year 2008 and prior years for certain U.S. persons.
Client Alert | August 7, 2009
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.
Client Alert | July 15, 2009
On June 24, 2009, the Internal Revenue Service ("IRS") announced that it was extending the June 30, 2009 deadline for filing Reports of Foreign Bank and Financial Accounts ("FBAR"), TD F 90-22.1, to September 23, 2009, for certain taxpayers, i.e., taxpayers that properly report and pay tax on 2008 income, but that only recently learned that they have FBAR filing obligations and do not have sufficient time to gather the information necessary to complete the form. The extension follows remarks made in mid-June by IRS representatives and confirmed on Friday, June 26, by an IRS spokesperson that, based on the instructions to the revised FBAR form that was issued in October 2008, foreign hedge funds and private equity funds are included in the definition of forei
Client Alert | June 29, 2009
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is tracking closely government responses to the turmoil that has catalyzed dramatic and rapid reshaping of our capital and credit markets.
Client Alert | June 17, 2009
Government investment funds, often referred to as "sovereign wealth funds," have become increasingly visible investors in the United States, a trend that has not escaped the attention of Congress.
Client Alert | May 29, 2009
This May 2009 alert focuses on Congress' expected creation of an independent commission to examine the domestic and global causes of the U.S. financial and economic crisis.
Client Alert | May 13, 2009
On Monday, President Obama released the details of his Administration's plan to reform the tax treatment of offshore earnings and combat tax havens. Crediting House Ways and Means Chairman Charles Rangel, Senate Finance Committee Chairman Max Baucus, Senator Carl Levin and Congressman Lloyd Doggett, the President announced a plan that would make several major substantive tax law changes, including reforming the deferral of income earned overseas, taxing certain foreign subsidiaries as corporations, and limiting the application of the foreign tax credit. The plan also includes several efforts to improve international tax compliance, such as strengthening certain information reporting requirements and increasing the IRS' enforcement tools. The Administration anticipates tha
Client Alert | May 6, 2009
Congressman Sander Levin (D-Mich.) recently reintroduced legislation in the House that would tax income and gains associated with "carried interests" as ordinary income.
Client Alert | April 7, 2009
Last week, the Department of the Treasury and the FDIC announced their Public-Private Investment Fund (PPIF) concept, intended to remove troubled assets from banks. Significant details of the proposal remain undefined, and public comment is sought.As announced, private investors and the Treasury will invest side-by-side in PPIFs, and will share in both profits and losses. Treasury financing also will be available. Additionally, PPIFs may issue FDIC-guaranteed debt. Details of the capitalization of PPIFs, the terms of the potential investments and financing, the accounting and regulatory implications for banks that sell assets to PPIFs and related matters have not been finalized. Similarly, while officials have stated that compensation limits will not apply to
Client Alert | March 30, 2009