Source: https://www.bna.com/us-income-taxation-p73014475884/
Timestamp: 2018-07-19 19:37:03
Document Index: 553667992

Matched Legal Cases: ['§892', '§893', '§895', '§892', '§893', '§895', '§892', '§892', '§892', '§892', 'arts\n3', '§897', '§7701', '§1441', '§1442', '§893', '§893']

U.S. Income Taxation of Foreign Governments, International Organizations, Central Banks, and Their Employees (Portfolio 6520) | Bloomberg Tax
Tax Management Portfolio, U.S. Income Taxation of Foreign Governments, International Organizations, Central Banks, and Their Employees, No. 6520, discusses primarily the income tax exemptions under §892, §893 and §895.
Tax Management Portfolio, U.S. Income Taxation of Foreign Governments, International Organizations, Central Banks, and Their Employees, No. 6520, discusses primarily the income tax exemptions under §892, §893 and §895. The Portfolio explores the development of the exemption under §892(a) for foreign governments, particularly the limitations placed on the scope of the exemption by the 1986 Tax Reform Act and by the 1988 temporary regulations and the clarifications (and liberalization) of existing rules by the 2011 proposed regulations. It analyzes in detail what types of organizations are exempt from tax and what kinds of income received by such organizations are exempt from tax. There is an extensive analysis of the issues raised by the regulations under §892 and the ambiguities still present in the law. Tax planning suggestions are also presented and analyzed. It further explores the broader income tax exemption available to certain international organizations under §892(b).
Babak E. Nikravesh, B.A., University of California, Berkeley (1992); J.D., UCLA School of Law (1996); Summer Session, The Hague Academy of International Law (1996); LL.M., London School of Economics and Political Science (1997); M.A., Stanford University (1998).
2. 2011 Proposed Regulations
C. Historical Scope of the §892 Exemption
1. Early Rulings
2. Vial Case
3. Revenue Ruling 66-73
4. Post-Revenue Ruling 66-73 Period
5. Revenue Ruling 75-298
D. Exempt Entities Under the Temporary Regulations
1. Foreign Government vs. Foreign Sovereign
2. Integral Parts
3. Controlled Entities
4. Pension Plans and Pension Trusts
5. Prohibition on Private Inurement
6. Distinguishing Integral Parts from Controlled Entities
7. Political Subdivisions and Transnational Entities
8. FCBIs as Foreign Governments
E. Types of Income of Foreign Governments Eligible for Exemption
2. Income from Stocks, Bonds, or Other Domestic Securities
a. Partnership Issues
(1) Partnerships that Are Not Publicly Traded Partnerships
(2) Publicly Traded Partnerships
b. USRPHCs, USRPIs, REITs, and Participating Mortgages
(2) Capital Gains Distributions from REITs and RICs
(a) Taxability Under §897(h)
(b) Branch Profits Tax
(c) Possible Use of Losses
(3) Participating Mortgages
3. Income from Financial Instruments
a. Execution of Financial or Monetary Policy
b. In Currency or Precious Metals
4. Notional Principal Contracts
F. Commercial Activity Exception
2. Scope of the Term
a. The Investing Exception
b. The Trading Exception
(1) Trading in Stocks, Securities, and Commodities
(2) Trading in Derivatives and NPCs
(3) Special Issues Under the Investing and Trading Exceptions
(a) Banking, Financing, or Similar Business
(b) Real Estate and U.S. Real Property Holding Corporations
(c) Investing Through Partnerships and Private Equity Fund Issues
(i) Partnership Integration
(ii) Excess Fees
(iii) Partnership Attribution and the Limited Partner Exception
(d) Consent and Inducement Fees
e. Not-for-Profit Activities
g. Inadvertent Commercial Activity
(1) Reasonable Failure and “Safe Harbor”
(2) Prompt Cure
(3) Record Maintenance
4. Controlled Commercial Entities
b. USRPHCs
c. FCBIs
d. Pension Trusts
e. Effective Practical Control
5. Attribution of Commercial Activity
6. Duration of Commercial Activity
G. Application of Branch Profits Tax to Foreign Governments
H. Exempt Income of International Organizations
I. Entity Classification Under §7701 Regulations
1. Withholding on FDAP Under §1441 and §1442
2. Backup Withholding and Information Reporting
3. Withholding by Partnerships, REITs, RICs, and on USRPIs
L. No Ruling Area
M. Foreign Account Tax Compliance Act (FATCA)
A. Scope of the §893 Exemption
2. Criminal Penalty
D. Waiving the §893 Exemption
2. Treaty Traders
3. International Organization Representatives
C. Other Code Provisions
1. Section 883
2. Section 897(l)
Worksheet 1 S. Rep. No. 99-313, at 415 (1986)
Worksheet 2 H.R. Rep. No. 99-841, at II-654 (1986) (Conference Report)