Overview
G5 Countries Announce Plan for Beneficial Ownership Information Exchange: On April 14, finance ministers from France, Germany, Italy, and Spain announced a plan to develop a multilateral system for automatically exchanging beneficial ownership information on offshore accounts beginning in 2017 or 2018. This “pilot initiative,” also calls for action from the rest of the G20 nations.
IRS Schedules Hearing on Country-by-Country Reporting Rules: Today, the IRS announced a public hearing to be held on May 13 on proposed regulations (80 FR 79795) issued December 23, 2015 that would require annual country-by-country reporting by certain US entities that are the ultimate parent of a multinational group.
DTU IN DEPTH
Withdrawal Liability for Private Capital Equity Funds: The Sun Capital Partners Saga Continues: Sun Capital Partners III, LP v. New England Teamsters and Trucking Industry Pension Fund, 2016 U.S. Dist. LEXIS 40254 (D. Mass. Mar. 28, 2016) holds that two private equity funds under common management are liable to a multiemployer pension plan for withdrawal liability incurred by one of their portfolio companies, despite the fact that neither had the 80% ownership interest required to establish a controlled group between itself and the now-bankrupt employer. According to the district judge, ownership was not divided 70/30 between the funds. Instead, the 100% owner was a notional joint venture between them. The joint venture and the company thus formed a parent-subsidiary controlled group, the plan could assess withdrawal liability against the parent, and, because the parent was unincorporated, that liability passed through to the joint venturers. Click here for more in depth coverage.