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Mike Heimert, Managing Director and Global Head of Duff & Phelps' Transfer Pricing practice, was quoted in Transfer Pricing Week (TP Week). The article discusses U.S. President Donald Trump's one-page tax reform plan that was released on April 26, 2017.
Mike explains that the road from proposal to law is "long and winding and there will be fallen trees and boulders along the way," but that the reform would create activity in the international tax arena.
"The plan is generally favorable to U.S.-based multinationals, as well as to companies doing business in the U.S., given its reduced tax rates. Businesses will need to monitor the developments carefully," Heimert said. "One potential change may be that many U.S. companies will choose to unwind or modify their cost-sharing arrangements, as there would be a lowered incentive to have intangible-generating income residing outside the U.S. We may also see an increase in U.S.-based investment at the margin from non-U.S. companies given the lowered cost of doing business.”