Why R&D Should Be Allocated To Subpart F and GILTI

167 Tax Notes Fed. 2081 (2020)

20 Pages Posted: 13 Jul 2020

See all articles by Stephen E. Shay

Stephen E. Shay

Boston College Law School

Reuven S. Avi-Yonah

University of Michigan Law School

Patrick Driessen

Independent

J. Clifton Fleming

Brigham Young University - J. Reuben Clark Law School

Robert J. Peroni

University of Texas at Austin - School of Law

Date Written: June 23, 2020

Abstract

In this article, the authors critically appraise the government’s proposal not to allocate research and development deductions to subpart F inclusions and global intangible low-taxed income for foreign tax credit limitation purposes. They say the proposal is an unprecedented interpretation of the statute unsupported by any relevant legislative history that would radically change an R&D allocation method in place since 1977. They argue that the justifications provided in the proposed regulations’ preamble do not stand up to scrutiny.

Suggested Citation

Shay, Stephen E. and Avi-Yonah, Reuven S. and Driessen, Patrick and Fleming, J. Clifton and Peroni, Robert Joseph, Why R&D Should Be Allocated To Subpart F and GILTI (June 23, 2020). 167 Tax Notes Fed. 2081 (2020), Available at SSRN: https://ssrn.com/abstract=3633962

Stephen E. Shay (Contact Author)

Boston College Law School ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Reuven S. Avi-Yonah

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

Patrick Driessen

Independent ( email )

J. Clifton Fleming

Brigham Young University - J. Reuben Clark Law School ( email )

430 JRCB
Brigham Young University
Provo, UT 84602
United States

Robert Joseph Peroni

University of Texas at Austin - School of Law ( email )

727 East Dean Keeton Street
Austin, TX 78705
United States

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