Why R&D Should be Allocated to Subpart F and GILTI

Authors

Stephen E. Shay, Boston College Law SchoolFollow
Reuven S. Avi-Yonah, University of Michigan Law SchoolFollow
Patrick Driessen
J. Clifton Fleming Jr., Brigham Young University J. Reuben Clark Law SchoolFollow
Robert J. Peroni, University of Texas School of LawFollow

Document Type

Article

Publication Date

6-2020

Abstract

This article responds to the notice of proposed rulemaking under sections 861 and 904 (REG105495-19) published in the Federal Register December 17, 2019 (the proposed regulations). The proposed regulations would not allocate U.S. shareholder deductions for research and development or experimentation (R&D or R&E) expenditures under section 174 (R&D deductions) to a gross income inclusion under section 951 (subpart F inclusion) or section 951A (global intangible low-taxed income)1 from a controlled foreign corporation for foreign tax credit limitation purposes.

Comments

Reprinted with the permission of Tax Analysts.

Recommended Citation

Shay, Stephen E. "Why R&D Should be Allocated to Subpart F and GILTI." Reuven S. Avi-Yonah, Patrick Driessen, J. Clifton Fleming Jr., and Robert J. Peroni, co-authors. Tax Notes Int'l. (2020): 1365-83.