Group Reorganisations

Board resolutions: the costs of complexity

17 January 2022 Paul Sutton

In our last blog I examined the recent judgment in Australia in which the ATO succeeded in litigation with Singapore Telecom Australia. One of several striking features of that case was that the group had seemingly set up a financing arrangement that the directors of the entities concerned could not have properly approved. It also…

Group Reorganisations

Intercompany Agreements

End of LIBOR, and the Singapore Telecom Australia decision

10 January 2022 Paul Sutton

As of 1 January this year, 24 of the 35 LIBOR interest rate benchmarks or ‘settings’ are no longer published. What does this mean for groups which still have intercompany loan agreements, loan notes or cash pooling arrangements that refer to LIBOR? On the face of it, it’s very simple: select an alternative risk-free rate…

Group Reorganisations

Intercompany Agreements

The arm’s length principle: fact or fiction?

29 November 2021 Paul O’Regan

We hope you enjoyed our recent interview with Philippe Paumier. We found it very thought-provoking, and in fact we’d like to share some of those thoughts with you here. The starting point is Philippe’s statement: “TP is a construction. It’s a theoretical construction. The very basic and fundamental point of transfer pricing is that parties have to behave…

Group Reorganisations

Intercompany Agreements

The LCN Interview: Rebecca Flanagan

27 October 2021 Paul O’Regan

Rebecca has just joined the LCN Legal team as a Director. She brings a lot of experience of advising on M&A and group reorganisations. How did you become a specialist in group reorganisations? I did my training contract at Clifford Chance, and I worked there for about four years post-qualification. Then I moved to…

Group Reorganisations

Interviews

Intercompany Agreements

The two types of profit split arrangements in transfer pricing

9 November 2020 Paul Sutton

In commercial relationships as in intra-group structures, there are two types of profit split arrangements. In both types, the participants to the arrangement may make (a) an up front contribution of cash or assets, and/or (b) ongoing contributions of services. The distinction is in the nature of the interest which each participant receives. A Type…

Group Reorganisations

Intercompany Agreements

DAC6 – Best Practices

1 June 2020 Paul Sutton

Many organisations – corporates and advisers – are still formulating their policies and processes for complying with DAC6. If you’re also in that position, you’ll probably find this article written by Keith Brockman to be helpful. Keith is VP Global Tax at Welbilt Inc, a US headquartered multinational with annual revenues of over US$ 1.5…

Group Reorganisations

Intercompany Agreements

Coronavirus Q&A: Loans by subsidiaries to a parent company which needs cash

24 May 2020 Paul Sutton

Last week, we were asked by the European management team of a substantial multinational group to advise on a very common scenario in the current environment – a request by made by the overseas parent company to ‘repatriate’ cash, by way of loan. The key issue was whether the directors of the European subsidiaries involved…

Group Reorganisations

Intercompany Agreements

Coronavirus Q&A: Can a force majeure clause in an intercompany agreement justify a period of no mark up for a UK service company?

18 May 2020 Paul Sutton

I thought you might be interested in a question we received last week from an international tax adviser. I’ve set out the question and our answer below. Q: We’re having a number or enquiries from US headquartered groups regarding adjusting TP with UK service companies. I was wondering whether a force majeure clause in an…

Group Reorganisations

Intercompany Agreements