Tax Discussions

1. Post 3-5 sentences summarizing your thoughts / answers to the questions below.
Access to Article: Trump Article
Questions:
What is the global intangible low-taxed income (GILTI) tax?
Why did the Trump administration implement regulations related to the GILTI tax?
What may now happen to these regulations under President-elect Joe Biden?
Mr. Douglas Poms “help write the regulations [implemented by the Trump administration] and has since
rejoined accounting firm KPMG LLP.” What is his characterization of these regulations?
Why is this regulation change a likely path for President-elect Joe Biden and his incoming administration?
Include in your answer the impact of the political process on this corporate taxation decision making.
For your term project grade please respond to each question with 3-5 sentences.
Articles to Read:
First: Coca-Cola
Second: Coca-Cola Tax Rules
What is Transfer Pricing? (as a supplement to your textbook):
https://www.linkedin.com/pulse/transfer-pricing-meaning-examples-risks-benefits-shivangi-agarwal/
Questions:
Who/what made the determination that Coca-Cola inappropriately located too much of its profits outside of
the United States?
Based on the discussion in the article, summarize your understanding of the Coca-Cola operating structure.
Do you think the Coca-Cola subsidiary locations are solely driven by the level of taxation in their location?
Explain.
What factors formed the basis for the ruling that Coca-Cola improperly shifted profits away from the U.S. to
foreign locations with lower tax rates?
How should intercompany transactions be priced?
Does intercompany pricing impact overall operating results as shown in Coca-Cola’s consolidated financial
statements? Explain your answer, specifically addressing Coca-Cola’s warning to investors that the results
of this case could have a material adverse impact.
Explain your understanding of how pricing of intercompany sales determines profitability reported in
separate legal entities that form a consolidated group.