EVENTS & CONFERENCES

  • Uncertain Tax Positions: How objective is the critical standard of “more likely than not”?

    April 05 2013, 08:30 - 10:30

    The Chairman of the Taxation Working Committee of the American Chamber of Commerce in Paris is pleased to invite you to a breakfast roundtable to discuss the implications of the rules and considerations to bear in mind when determining uncertain tax positions for financial accounting and US tax purposes.

    “Fin 48” (Accounting for Uncertainty in Income Taxes under US GAAP) provides that a company may book an income tax benefit on its financial statements only if it is “more likely than not” that the benefit will be sustained if it is examined by a fully informed tax authority.  As of 2010, the recording of a reserve under Fin 48 to cover tax positions that do not meet the standard triggers the requirement that corporate taxpayers report these “uncertain tax positions” on Schedule UTP attached to their US income tax returns. 

    Essentially, taxpayers are providing the IRS with a roadmap of tax positions to consider if the corporation undergoes a tax audit. Yet, how reliable is this roadmap?  Is it fair for the IRS to have taxpayers themselves point out tax positions that may have a weaker chance of being defended?

    The following topics will be discussed during the roundtable:

    •Overview of the Fin 48 rules in US GAAP, and the extent to which similar principles will be adopted in IFRS;

    •How to tell whether a specific position is “more likely than not” to be sustained upon examination by the IRS;

    •Review of the requirements of disclosure of uncertain tax positions on corporate income tax returns and what the IRS does with this information;

    •Impact on French tax strategy of US corporations and their French affiliates;

    •Practical examples of the effect of Fin 48 and Schedule UTP on compliance procedures of US taxpayers, who are part of a multinational group

    Presenters for this event will be

    •Raphael Coin, Tax Director of GE

    •Tony Salameh, Audit Partner and US GAAP expert, Ernst & Young

    •Diane Juzaitis, Head of the US Tax Desk in the Paris office of Ernst & Young