Daily Tax Update - October 17, 2016: Panama Hires Public Relations Firm to Manage Panama Papers Fallout

Panama Hires Public Relations Firm to Manage Panama Papers Fallout:  Panama has officially engaged public relations firm Bellwether Strategies to manage the country’s reputation following the release of the “Panama Papers.”  According to filings with the US Foreign Agents Registration Unit, Bellwether Strategies will engage in “[d]aily activities to promote Panama’s commercial and diplomatic objectives worldwide,” and will also “provide written services including press releases and talking points.”  The filings further indicate that Panama’s President Juan Carlos Varela and the Ambassador to the United States, Emanuel Gonzalez-Revilla, will oversee the engagement.  


Final FAR Rule Prohibits Awards to Contractors With Delinquent Taxes or Felony Convictions:  The final Federal Acquisition Regulation (FAR) rule Prohibition on Contracting With Corporations With Delinquent Taxes or a Felony Conviction issued on September 30 adopts without change the earlier interim rule issued last December.  Click here to read more. 

Treasury, IRS Issue Temporary and Final Regulations Affecting Related-Party Financing:  On April 4, 2016, the Treasury Department and the IRS issued proposed regulations under section 385 (REG-108060-15) that proposed to greatly expand the IRS’s ability to recast related-party debt as equity.  These regulations caused considerable concern within the business community and on Capitol Hill.  On October 13, a mere six months after the regulations were proposed, Treasury and the IRS issued final and temporary regulations.  These regulations contain some significant changes to the proposed package.  Click here to read more.