Proposed Code Sec. 367 Regs Attempt to Tax Foreign Goodwill and Going Concern Value



Lowell Yoder wrote in this bylined article that proposed changes in Code Sec. 367 regulations will attempt to tax all transfers to a foreign subsidiary of goodwill and going concern value for use in a trade or business outside the United States. Mr. Yoder urged that such “extra-legislative proposed regulations should be withdrawn. There is no basis for taxing foreign goodwill or going concern value under Code Sec. 367(d) because those items are not within the definition of Code Sec. 936(h)(3)(B) intangible property.”