US tax reform: Key considerations for in-house counsel — navigating change and driving efficiencies

14H05597_RF.jpgThe Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, has widespread business implications affecting companies headquartered in the US, as well as any global company with operations in the US. As the tax department leads the company’s planning efforts, several corporate functions will be impacted by the reaction to the TCJA. And the legal function will be asked to help make this planning a reality.

EY Law stands ready to help you prepare now for tax reform. EY teams of over 2,100 attorneys in 82 countries who are poised to help in-house counsel effectively facilitate and support corporate alignment with the evolving tax landscape. We stand ready to help you prepare in advance for potential legal implications and throughout your journey.

Navigating the road ahead: prepare now for a smooth ride later

Understand and assess your organization’s legal entity footprint
A complete inventory of all legal entities (location, type, purpose) will be critical not just for tax reform but also for Base Erosion and Profit Shifting (BEPS) and pending European Union directive on holding companies.

Inventory intellectual property
During the tax modeling process it will be important to know where IP sits in the structure, who owns it, who uses it and the reasoning behind the current structure, including current registrations and expiration dates.

Gather intercompany agreements
An understanding of these agreements and how they are structured will be important considerations for capital movement and entity structure discussions.

Understand labor and employment transformation issues
As the corporate legal entity structure, supply chain and other parts of the business change under the new tax law, HR counsels can prepare now for issues arising as part of tax planning and implementation, including works council and labor union consultations, transferring employees between subsidiaries, collective dismissal, etc.

Continue to support the board’s growth strategy
How deals are structured and types of capital used during M&A, divestitures and carve-outs will most likely change.

View the full overview here.

Carolyn Libretti
Carolyn Libretti – Americas Law Leader

 

 

 

rutger

 

Rutger Lambriex – Global Corporate Law Leader

 

 

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Peter Katko – Global Digital Law Leader

 

 

Paula Hogéus_1
Paula Hogéus – Global Labor & Employment Law Leader

 

 

Jean-Christophe Sabourin

 

Jean-Christophe Sabourin – Global Transaction Law Leader