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Luca CM Melchionna, Esq., Managing member Luca CM Melchionna has 25+ years of experience in both private practice and academia, in Italy and in the United States. He is a...
Luca CM Melchionna, Esq., Managing member Luca CM Melchionna has 25+ years of experience in both private practice and academia, in Italy and in the United States. He is a...
Mission Melchionna PLLC is an indipendent law firm. Melchionna PLLC’s mission is to provide outstanding legal services and tax advice. We focus on building a relationship with...
About us Melchionna PLLC represents and assists North American and European business clients in achieving their goals with sound legal advice and innovative solutions to current...
In Pacific Management Group et al. v. Commissioner (T.C. Memo 2018-131), the Tax Court has established that a reorganization with the intent of postponing tax payments on a flow...
The most recently published data from the Bureau of Economic Analysis (BEA) prove the strength of the American economy, with a GDP that shows a growth of 3.2% in the third...
The National Defense Authorization Act, introduced for the 2019 fiscal year, has updated and broadened the powers of the Commission on Foreign Investments in the United States...
The FDA has recently finalized some regulations regarding the Drug Supply Chain Security Act (DSCSA). The goal is to help companies that operate in the pharmaceutical industry...
The Tax Cuts and Jobs Act (TCJA), aimed at reducing the US’s federal tax burdens, came into effect on January 1, 2018. The most important aspects of the TCJA concern the reduction...
On May 21, 2018 The Supreme Court of the United States established a relevant principle in terms of hourly compensation in labor contracts and alternative conflict resolution in...
The FSMA gives the Food and Drug Administration (“FDA”) authority to regulate food grown, harvested, or processed in the US or elsewhere. The FDA has the duty to better protect...
I dati piu’ recenti pubblicati dal Bureau of Economic Analysis (BEA) registrano la solidità del quadro economico degli Stati Uniti, con un PIL che evidenzia, nel terzo trimestre...
Il Dodd-Frank Act e il JOBS Act (Jump Our Business Startups) richiedono alle societa’ target americane, come noto, una serie di disclosure finanziarie molto accurate. Sulla base...
Per l’anno fiscale 2019 e’ stato introdotto il “National Defense Authorization Act”, che ha rinnovato ed ampliato i poteri della Commissione sugli investimenti stranieri negli...
In Pacific Management Group et al. v. Commissioner (T.C. Memo 2018-131), the Tax Court has established that a reorganization with the intent of postponing tax payments on a flow of income yet to be distributed should be considered a distribution of dividends.
In particular, the controlling corporation had set up various subsidiaries with the sole purpose distributing management and contractual factoring fees to its shareholders. The court held that an ulterior motive was at play, aimed at trying to disguise the flow of income in order to avoid paying taxes on the distribution of dividends to the company’s shareholders.
Based on the evidence gathered, having verified that the subsidiaries were actually shell companies and having conducted in depth legal and economic analyses on the factoring and management contracts, the court stated that the latter were lacking in the qualities and quality typical of those traded at market value and, thus, devoid of any economic significance.
For these reasons, the court declared that the flow of income between the parent company and the beneficiaries of management and factoring contracts to be an actual distribution of dividends to shareholders.
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