Tax News Update    Email this document    Print this document  

February 27, 2023
2023-0379

IRS Chief Counsel issues memorandum on the character of US depository receipts

In a Chief Counsel memorandum (AM 2023-001), the IRS has advised that payments from a US depository institution to a foreign corporation, either (1) for expenses the corporation incurs to institute a sponsored American Depositary Receipts program with holders in the United States and abroad or (2) under a revenue-sharing arrangement, both represent consideration for the US depository institution's exclusive right to establish, control and exploit the trading of the foreign corporation's American Depositary Receipts in the United States.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement