Jan. 30, 2020 - In our annual Tax Review and Outlook report, we look back at significant developments that shaped the Canadian and U.S. tax landscapes in 2019 and offer our predictions on what to expect in the year ahead. Key Canadian Developments in 2019 Proposed changes to the employee stock option rules...
IRS Should Allow QCIV Self-Designation Under FIRPTA
As part of the Protecting Americans from Tax Hikes Act of 2016 (PATH Act), Congress enacted a new exemption from the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) for foreign entities that are “qualified shareholders” of certain publicly traded real estate investment trusts (REITs) and other entities. The PATH Act provides that one way for a foreign entity to become a qualified shareholder is for the Treasury Department to designate the foreign entity as a “qualified collective investment vehicle” (QCIV). However, there is no guidance on how to obtain such designation.
In this article, originally published in Bloomberg BNA’s Tax Management International Journal, Davies partners Peter A. Glicklich and Neal H. Armstrong and associate Heath Martin describe and discuss the qualified shareholder exemption to FIRPTA and suggest procedures that the U.S. Treasury should adopt for foreign entities to be designated as QCIVs. The article also provides an example of the way the suggested procedures would apply to a publicly listed Canadian REIT.
Jan. 30, 2020 - Review of U.S. Tax Developments in 2019 In 2019, the U.S. tax world continued to be primarily concerned with developing guidance under the monumental Tax Cuts and Jobs Act (TCJA), which was enacted at the end of 2017. Major regulatory projects were proposed beginning in 2018,...