Case Study: Securing Tax Savings During a Multinational M&A Transaction
November 1, 2023
About the Client:
Aprio engaged with an automotive company that specializes in developing autonomous driving
technology.
The Challenge:
Aprio engaged with the client during a merger & acquisition (M&A) deal with a foreign
subsidiary. While in the negotiation process, the client neglected to ensure that the buyer in
the foreign subsidiary disposition filed an Internal Revenue Code (IRC) Section 338(g) election,
as required under the transaction’s legal terms.
The Solution:
Aprio’s International Tax team thoroughly analyzed the disposition of a controlled foreign
corporation. The team drafted, submitted and successfully received an IRS private letter ruling
allowing the foreign buyer to make a late IRC Section 338(g) election. Thanks to Aprio’s
guidance on the disposition, the client was able to recognize global intangible low-taxed income
(GILTI) and a reduced effective tax rate.
The Result:
Our International Tax team was able to help the client save US federal income tax of over $1
million, as a result of the reduction in the effective corporate income tax rate due to the
successful IRS private letter ruling request.
This case study illustrates how Aprio’s technical knowledge and expertise help clients reap
significant tax savings — even during ongoing M&A transactions. Our International Tax team
helps companies navigate complex IRS rules and regulations, while identifying the best tax
benefits for their unique situation
If you are interested in seeking technical tax advice from Aprio’s International team, contact
us today.
Jed Rogers
International Tax, Partner
jed.rogers@aprio.com
770.353.3184
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About the Author
Jed Rogers
Jed is a Tax Partner at Aprio who counsels clients on international tax matters and M&A transactions. Jed has a deep knowledge of federal tax law and transactional tax planning, including serving more than a decade as in-house counsel for technology corporations and as a member of multinational professional services firms. He routinely advises multinational clients on a broad array of inbound and outbound U.S. and international jurisdiction tax matters, including repatriation planning, international tax credit planning, holding company and financial structures, foreign exchange matters, internal reorganizations and post-acquisition integrations. His background is invaluable as he works with clients to develop tax saving strategies.
