A two day technical Update with group live instruction on Tax Developments and Strategies in Structuring Domestic & Cross-border Corporate Mergers and Acquisitions

Benefits of Attending

• Discuss Mexico's Flat Tax:IETU and it's Impact on Doing Business in Mexico
• Understanding the IMMEX Decree and its impact to your manufacturing operations
• Discuss new changes to the Transfer Pricing rules in Mexico
• Qualifying for tax-free mergers and split-ups in streamlining operations in Mexico
• Financing cross-border mergers and acquisitions in Mexico
• Impact of the FIN 48 disclosure rules for uncertain tax positions on operations in Mexico
• Resolving tax controversies in Mexico and cross-border tax disputes
• Understanding transfer pricing in Mexico and current rules for maquiladoras
• Legal and practical tax aspects of structuring royalty payments in Mexico
• Cross-border tax planning for leasing in Mexico
• Find out the latest developments under the Mexico-U.S. Income Tax Treaty

Educational Course Credit — Up to 16 CPE / CLE Credits Available

Substitutions/Cancellations

Cancellations received more than 72 business hours prior to the meeting will be issued a credit. A $350 fee will apply to cancellations received within 72 business hours of the event. No credit card or cash refunds will be issued at any time. For more information regarding administrative policies, such as complaints and refunds, please contact us at 1-914-328-5656, or e-mail info@citeusa.org. Credits will not be issued for "no shows"

CITE's block of discounted sleeping rooms is limited - reserve your sleeping room early! We cannot guarantee rates or availability. A very limited block of rooms at a reduced rate has been set aside for CITE attendees. For conferences being held at local firm centers, hotel blocks have not been arranged and accommodations are at your own discretion

• Update on recent legislative changes to Mexico’s Tax Law and Federal Tax Code
• How Mexican income taxes and levies affect business operations – using an independent or dependent agent to create PE status
• Choosing the proper vehicle for structuring operations in Mexico – use of a holding company or joint venture
• Computing taxable income in Mexico, including employee profit share – how to deal with the flat tax (IETU)
• Obtaining a refund of Asset taxes paid in prior years
• Dealing with the tax on cash deposits

9:45 am Break for Refreshments

10:00 am SOX Corporate Governance Issues Affecting Operations in Mexico

• What corporate tax practitioners need to know about Sarbanes-Oxley (SOX) – key FIN 48 issues in Mexico
• Common temporary and permanent differences for operations in Mexico – impact of tax audits and litigation on disclosure of uncertain tax positions
• How to achieve auditor independence - non-audit services prohibition
• Resolving conflicts between disclosure and attorney-client privilege

11:00 am Mexico M&A Legal and Tax Update

• Structuring taxable v. tax-free mergers in Mexico – how recent tax law changes affect acquisition and merger activity
• How to achieve de-mergers and spin-offs tax free while preserving tax basis and other attributes
• Stock v. asset acquisitions in Mexico – obtaining a basis step-up in Mexico
• Transfers and amortization of intangibles from the buyer’s and seller’s perspective - dealing with goodwill issues
• Conducting legal and tax due diligence in reviewing purchase or merger agreements - dealing with escrow accounts

12:15 pm LUNCHEON

1:30 pm Mexico VAT (Value-added Tax) Update

• Dealing with value added tax (VAT) issues – understanding how the cash basis and credit system operates in Mexico
• Documentation of eligible credits – procedural aspects
• How to recover VAT credits and refundable amounts
• Understanding the 0% VAT rate for exportations of services

2:30 pm Refreshment Break

2:45 pm Repatriating Earnings from Mexico

• Tax issues involving cross-border royalty and technology transfers – U.S.-Mexico income tax treaty planning
• Tax treatment of payments for the use of software in Mexico
• Flat tax impact on royalty payments
• Issues in implementing Cost Contribution Agreements with Mexican subsidiaries
• Use of intercompany services and management fees – advantages and disadvantages of using a conduit entity

4:00 pm Financing Operations in Mexico

• Use of debt vs. equity in financing operations - review of the thin capitalization rules in Mexico
• Book and tax differences in accounting for inflation
• Obtaining benefits for interest deductions in Mexico – Flat tax impact on interest payments
• Treatment of exchange gains/losses – impact on income tax and profit sharing basis
• How to use cross-border leasing for transferring equipment to Mexico – dealing with asset and withholding tax issues
• Using both debt and equity financial derivative transactions – Futures, options, hedges and swaps
• Understanding the new REIT and venture capital tax systems in Mexico

5:15 pm Meeting Adjourns for the Day

Tuesday, September 21st

7:30 am Continental Breakfast

8:00 am Update on Manufacturing Alternatives and IMMEX Tax and Customs Benefits

• Key issues in structuring tax-efficient manufacturing operations in Mexico under the new IMMEX Decree – obtaining Certified Importer status and its benefits
• Update on proposed modifications to IMMEX Decree including proposed modifications to Article 33 of the IMMEX Decree and its impact on tax and customs benefits
• Update on IMMEX transfer pricing guidelines
• Flat tax impact under the Presidential Decree for maquiladora companies

9:30 am Break for Refreshments

9:45 am Key Tax Issues in Sending Individuals to Mexico

• How Mexico taxes activities of non-resident individuals
• When a non-resident working in Mexico on temporary assignment is subject to income or withholding tax
• Stock options compensation-Mexican tax treatment
• Dealing with payroll and other social taxes
• How Mexico taxes income earned by resident alien individuals living in Mexico – avoiding black list and Mexico CFC rules

10:45 am Dispositions and Reorganizations involving Subsidiaries in Mexico

• Elections on private shares and rules to achieve exemptions on publicly traded shares - Computing adjusted basis of the stock and paying the tax on net basis
• Strategies for liquidating or disposing of subsidiaries in Mexico
• Taxation of contribution and transfer of appreciated property - migration and deemed liquidation rules
• Advantages and disadvantages of the tax consolidation regime
• Comparison of U.S. and Mexico rules for taxable v. tax-free reorganizations - how to apply for a tax deferral ruling
• Using stock redemptions and capital reductions to restructure operations in Mexico
• Avoiding black list and the Mexico CFC rules on sale or reorganization transactions

12:15 pm Luncheon

1:15 pm U.S. - Mexico Transfer Pricing Issues

• Understanding the transfer pricing and penalty guidelines in Mexico – use of secret comparables
• How to deal with the Mexican reporting requirements for Transfer Pricing Information Returns
• Impact of new US services regs related to Mexico operations
• Increasing audit scrutiny of inter-company transactions – issues in deductibility of cost allocations
• Update on SAT specialized tax transfer pricing audits. Approaching business restructuring regarding commissioners and supply chain
• Filing for a bilateral APA and other Competent Authority proceedings

2:45 pm Refreshment Break

3:00 pm Resolving Tax Controversies in Mexico

• Understanding the Mexican tax legal system/procedures
• Tax assessments and appeals
• Jurisprudence and “Amparo” proceedings
• Recent Mexican court cases and trends on international tax disputes
• Update of IRS tax and customs audit approach regarding US companies doing business in Mexico

4:00 pm CONFERENCE ENDS

CITE Conference Registration - Page 1

There are 3 ways to register for a CITE Conference:

1. Complete this form and fax Page 2 to 914-328-5757
2. Call us directly at 914-328-5656
3. Complete the online registration process

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