Analysis Group’s experts and consultants draw on their expertise in economics, valuation, accounting, and financial analysis to address the most challenging issues that arise in complex tax disputes.
We have assessed tax liability and exposure related to investments in tangible and intangible assets, and have analyzed complex intracompany pricing and transaction issues, including the form and economic substance of transactions with important tax ramifications. We have also addressed economic substance and business purpose issues in a number of litigation and investigatory matters involving listed transactions. This latter work has been undertaken on behalf of government clients such as the US Department of Justice and Internal Revenue Service, as well as on behalf of taxpayers.
In litigation, regulatory investigations, valuations, and other tax-related matters, we frequently work with publicly available information and a variety of case-specific documents and data – including company business plans and management reports, internal communications, electronic accounting data, auditors’ work papers, and internal accounting and financial records – in order to understand a firm’s financial position, revenues, costs, and profits. Our analysis of tax-related matters often involves comparing actual outcomes with scenarios based on alternative assumptions regarding different key business characteristics, including organizational form (e.g., C corporation versus S corporation), ownership structure (e.g., wholly owned subsidiary versus participation by third-party firms), financing terms, capital structure, intracompany transactions, and business strategy.
In tax-related matters, Analysis Group has analyzed whether:
- Generally accepted accounting principles (GAAP) and/or generally accepted auditing standards (GAAS) were correctly applied
- The documentation for transactions between related entities and the subsequent conduct of business operations following such transactions reflected arm’s-length economic and management principles
- A transaction or series of transactions had economic substance or a business purpose separate and apart from certain of their claimed tax consequences
- The valuation of corporate entities and financial instruments (including loan guarantees) were accurate for tax purposes
- The terms of a loan between related entities, including maturity and interest rate charged, were consistent with arm’s-length economic and finance principles
- A transaction or series of transactions constituted a completed sale or transfer of ownership of a particular business entity, asset, or liability, from an economic perspective
- An investment instrument had reasonable upside relative to other potential investments
- Impairment of various assets occurred
- An entity met balance sheet and cash flow solvency standards
- Featured Expert R. Glenn Hubbard Dean Emeritus and Russell L. Carson Professor of Finance and Economics, Columbia Business School
Tax Shelters or Efficient Tax Planning? A Theory of the Firm Perspective on the Economic Substance DoctrineJournal of Law and Economics, November 2014
- Featured Expert R. Jeffrey Malinak Managing Principal, Washington, DC
Chemtech Royalty Associates L.P. v. United States of America
- AG Feature Taxing Questions: Managing the Taxation Complexities of Smart Contracts
AWG Leasing Trust v. United States of America