Insight
Impacts of the move away from LIBOR and taxpayer actions discussed
It behooves taxpayers to design a detailed plan for the LIBOR transition as soon as practical. This should include establishing clear responsibilities and lines of communication among the relevant stakeholders, such as tax, accounting, finance, treasury, and legal teams.
The end of the London Interbank Offered Rate (LIBOR), which is not guaranteed to be published after 2021, represents a momentous transition for the world's financial markets. The following article, The Demise of LIBOR – Tax and Transfer Pricing Implications, first appeared in Bloomberg Tax publications, discusses transfer pricing and other U.S. tax implications of the move away from LIBOR, as well as the steps that taxpayers should consider now to be prepared for the change. The authors from KPMG LLP and Cadwalader, Wickersham & Taft LLP focus on intercompany financial instruments, particularly debt, and note that many of the issues discussed also apply to third-party arrangements.
Download the article for tax and transfer pricing inisghts on transition away from LIBOR