Seizing Opportunities and Navigating Uncertainty from US & Mexican Tax Reform

JANUARY 31, 2019Hyatt RegencyCampos Elíseos 204, Polanco, Polanco IV Secc, 11560 Ciudad de México, CDMX, Mexico

www.bakermckenzie.com/tax41st Annual North America Tax Conference

ABOUT THE EVENT

Tax reform in both Mexico and the United States continues to impact today’s multinationals and create uncertainty surrounding tax planning, compliance, disputes and transfer pricing issues. On Thursday, January 31st, we invite you to join Baker McKenzie in Mexico City for a full-day program dedicated to addressing these uncertainties.

The program agenda includes plenary sessions on the impact of global tax reform and timely updates on key legislative and regulatory changes. Breakout sessions in both the morning and afternoon will enable participants to select from a variety of topics such as: issues impacting Mexican families with wealth holding structures in the US, trends in M&A, changes affecting the energy industry, developments on digital economy taxation, and navigating privilege in tax planning. The conference will conclude with a discussion of how taxpayers can manage their global transfer pricing risk.

We look forward to having you join us. There is no fee to attend, but registration is required and accepted on a first-come, first-served basis.

Hyatt RegencyCampos Elíseos 204, Polanco, Polanco IV Secc, 11560 Ciudad de México, CDMX, Mexico

SEIZING OPPORTUNITIES AND NAVIGATING UNCERTAINTY FROM US & MEXICAN TAX REFORM

41st Annual North America Tax Conference www.bakermckenzie.com/tax

8:00 am - 8:45 am Registration and Continental Breakfast

8:45 am - 9:00 am Welcome and Opening Remarks

Simone Dias Musa, Chair, Global Tax Practice Group Melinda Phelan, Chair NA Tax Practice Group

9:00 am - 10:00 am The Impact of Continuing Global Volatility on the In-House Tax Team

With a new president beginning his administration in Mexico, the fallout continuing from US tax reform passed last year, and ongoing political changes around the world, uncertainty continues to be the new normal in our profession. More changes are on the horizon, the landscape may again be very different in the coming months, and there is more transparency and sharing among governments than ever before. We will open our annual tax conference by inviting senior tax professionals to join us in a lively discussion of how they are navigating uncertainty and responding to change with regard to planning, compliance, disputes, and transfer pricing.

Moderator: Melinda R. Phelan (Dallas) Panelists: Luis Carbajo-Martinez (Mexico City), Jorge S. Narváez-Hasfura, Ezequiel Graziano, (LAM Tax Director, Weatherford), Carla Heijns (Mexico and Caribbean Tax Manager, Honewell), and David Maryles (Former Senior Vice President and Global Head of Tax, CA Technologies)

10:00 am - 11:00 am Global Legislative and Regulatory Update: What Just Happened and What Is Likely Around the Corner

In this session, we will focus on the status of key legislative and regulatory changes likely to occur in key jurisdictions around the globe as we move into the new year. We will

focus on potential changes coming in Mexico in response to US tax reform and a new administration, and where the US will head as the politics continue to shift in Washington.

Moderator: Alexandra Minkovich (Washington, DC) Panelists: Margreet G. Nijhof (Amsterdam), Eliud Santiago (Mexico City, Former International Tax Surveillance Director for the Servicio de Administración Tributaria), and Mary C. Bennett (Washington, DC)

11:00 am - 11:15 am Refreshment Break

11:15 am - 12:00 pm Keynote Presentation

Keynote Speaker: Dr. Margarita Ríos-Farjat, Head of the Mexican Internal Revenue Services (Servicio de Administración Tributaria – SAT)

12:00 pm - 12:15 pm Refreshment Break

12:15 pm - 1:00 pm Breakout Session I

Option A: Recent Trends in Cross-Border Mergers, Acquisitions, and Restructurings

Mergers and acquisitions are on the rise and this session will explore the impact of various US tax reform on cross border transactions, including targets located in Latin American countries. We will also address opportunities to structure and finance acquisitions efficiently and analyze current trends and potential pitfalls.

Panelists: Kai R. Kramer (Houston), Moe Worsley (San Francisco), Christine Agnew Sloan (Washington, DC), and Simone Dias Musa (São Paulo)

Option B: Changes to the Energy, Oil, and Gas Industry in Mexico

Focusing on business opportunities for corporations in the energy sector, this session will explore the energy provisions in the new United States-Mexico-Canada Agreement (“USMCA”) and what to expect on energy policy from Mexico’s new administration. Also, the presenters will analyze (i) potential amendments to the Hydrocarbons Revenue Law and how these amendments may impact the oil & gas upstream industry and (ii) policies that may be implemented by the new president with regard to fuel prices and taxes.

Panelists: Benjamín Torres-Barrón (Mexico City), Héctor Reyes-Freaner (Mexico City), and Matthew Mauney (Houston)

Option C: Best Practices for Coordinating and Running Audits in Multiple Jurisdictions

Long gone are the days when the tax department had to deal with only one audit at a time. Today, taxpayers are facing audits from multiple tax authorities around the globe at the same time. These audits have become increasingly aggressive and coordinated, and companies are often unaware of the level of coordination among the various tax authorities. In this session we will explore best practices for managing audits in multiple jurisdictions.

Panelists: Summer Austin (Washington, DC), Amit Ummat (Toronto), and Joseph “Jud” B. Judkins (Washington, DC)

Option D: Update on Global Transfer Pricing Issues

More than ever, transfer pricing is a key focus of Global taxing authorities. In the wake of US Tax Reform, BEPS, and new unilateral anti-avoidance measures, many companies are reconsidering their approaches to transfer pricing.

AGENDASEIZING OPPORTUNITIES AND NAVIGATING UNCERTAINTY FROM US & MEXICAN TAX REFORM

41st Annual North America Tax Conference www.bakermckenzie.com/tax

How have these changes impacted supply chain planning? Transfer pricing controversies? Understanding the latest trends and developments will help taxpayers identify potential transfer pricing opportunities and navigate high-stakes global audits and litigation.

Panelists: Imke Gerdes (New York/Vienna), Moisés Curiel García (Mexico City), Shanwu Yuan (New York/China), and Tamara A. Levin (San Francisco)

1:00 pm - 1:15 pm Refreshment Break

1:15 pm - 2:00 pm Breakout Session II

Option A: US Tax Planning Post Tax Reform

The fallout from last year’s tax reform continues, with new and substantial guidance coming from the US Treasury. For global companies with US operations, the rules have changed completely and companies face numerous obstacles and pitfalls without proper planning and analysis. In this session, we will examine the new rules, highlight their impact on existing structures, and point out planning opportunities that remain for some companies.

Panelists: Meaghan A. Wolfe (Chicago), Julia Skubis Weber (Chicago), and Jennifer Molnar (Washington, DC)

Option B: Recent Developments on Digital Economy Taxation

Both internationally, and in Mexico, more thinking has been devoted to modifying the international tax rules to address the tax challenges of the digitalized economy. This session will address the current state of EU proposals for gross-based taxation of certain digital services and a virtual PE, similar separate country initiatives in those areas, and possible comprehensive solutions to emerge from the OECD to be implemented on a consensus basis. This panel will also consider the possible timeline for implementing the OECD

proposals, the details that are still left to be drafted and issues to consider in planning for the not-so-distant future.

Panelists: James A. Wilson (Washington DC/London), Luis Adrián Jiménez Robles (Mexico City), Diana Juarez-Martinez (Mexico City), Grace Meador (San Francisco), and Javier Blázquez (Palo Alto/Barcelona)

Option C: Navigating Privilege Issues in Tax Disputes

With global audits becoming more frequent and aggressive, taxpayers are increasingly concerned about preparing for audits and appropriately protecting confidential information. In this session we will explore best practices for protecting documents from unwanted disclosure and examine rules in various key jurisdictions.

Panelists: Erin Gladney (New York) and Joy A. Williamson (Dallas)

Option D: Trends in Outsourcing Services to Mexico

In this session, we will discuss current trends in outsourcing services to Mexico and the resulting tax and transfer pricing implications. Additionally, we will provide an update on the labor, tax and social security implications of employee leasing companies commonly used in Mexico and best practices for implementing and maintaining these companies.

Panelists: Armando Cabrera-Nolasco (Guadalajara) and Eduardo Méndez-Ojeda (Monterrey)

Option E: Global Wealth Management Planning Planning for Mexican Families with US Connections/ Moving to the US

During this session, we will address the key legal provisions stemming out of the US Tax Reform that are relevant to Mexican families and the wealth holding structures regularly

used to maintain their investments in the US. The most significant changes include a temporary increase to the estate and gift tax exclusion, changes to the taxation of business organizations, changes related to the US system of international taxation, investments in Qualified Opportunity Zones. We will also discuss the pre-immigration aspects to consider when moving to the US.

Panelists: Cecilia “Ceci” Hassan (Miami), Rodney W. Read (Houston), and Javier Ordoñez Namihira (Mexico City)

2:00 pm - 3:00 pm Lunch

3:00 pm - 3:15 pm Networking Break

3:15 pm - 4:15 pm Breakout Session III

Option A: Intercompany Financing Options in Light of US and Mexican Tax Reform—New Limitations on Business Interest Deductibility

The TCJA made several significant changes to the treatment of US corporate debt, including overall interest deduction limitations, anti-hybrid rules, and the BEAT, and new US Treasury regulations recently issued have created even more complexity. Mexican tax authorities have also become more assertive in challenging related-party interest deductions by Mexican corporations, including by broadly interpreting the Mexican back-to-back loan rules.

We will provide an update on key aspects of the new US regulations and other changes and their impact on the market for debt and equity, intercompany financing options, and other relevant topics.

Panelists: John D. Barlow (Washington, DC), Steven R. Schneider (Washington, DC), Tatyana Johnson (New York), and Victor Alejandro Morales-Chavez (Mexico City)

AGENDASEIZING OPPORTUNITIES AND NAVIGATING UNCERTAINTY FROM US & MEXICAN TAX REFORM

41st Annual North America Tax Conference www.bakermckenzie.com/tax

AGENDASEIZING OPPORTUNITIES AND NAVIGATING UNCERTAINTY FROM US & MEXICAN TAX REFORM

41st Annual North America Tax Conference www.bakermckenzie.com/tax

Option B: The Future of the Maquiladora Regime

Many aspects of global tax reform are leading taxpayers to revisit the current benefits of a maquila operation, the implications of having different manufacturing business models, possible permanent establishment exposure, and value added tax implications, as well as the possible supply chain structures for sales into Mexico. We will review the status of important changes impacting the structure of many maquiladoras today and proposed Mexican changes that would impact companies with operations on Mexico’s northern border. We will also provide an update of the key incentives available in Mexico and the Free Trade Zones (Zonas Francas) proposed by the new federal government.

Panelists: Rafic H. Barrage (Washington, DC), Juan Carlos Valles Zavala (Juárez), Oscar Mata (Tax Director, Lear Corporation), and Jorge Pardi (Controller, Latin America, Aptiv)

Option C: Recent Trends in Mexican Audits and Alternative Dispute Resolution Options

During this session, we will identify current trends in Mexican audits and various alternative dispute resolution methods, including Mutual Agreement Procedures (MAP), Advance Pricing Agreements (APA) and arbitration. We will also address the options for litigating unresolved disputes and provide a comparison of the various ways taxpayers can resolve proposed adjustments in Mexico.

Panelists: Roxana M. Gómez-Orta (Monterrey), Ulises Castilla Flores (Mexico City), and Roberto Cardona Zapata (Mexico City)

Option D: IP and Intercompany Transaction Planning Post-US Tax Reform—BEAT Challenges and FDII Opportunities

The new BEAT and FDII regimes present very real risks and opportunities for US taxpayers. Given the potential for significant tax costs and savings from these provisions, many taxpayers are reassessing their operating structures, and some taxpayers have actively begun restructuring their operations. We will discuss whether and how taxpayers are restructuring their IP, supply chains, and intercompany services in light of the new provisions.

Panelists: Paula R. Levy (Palo Alto), Taylor S. Reid (Palo Alto), Chetan Patel (Houston), and Joyce Y. Smith (San Francisco)

Option E: Global Wealth Management Planning Mexican Tax Reform, Transparency & Planning for Families With Ties to Spain

During this session, we will address the impact of the Mexican Tax Reform on families and high-net-worth individuals, as well as the possible planning going forward considering the political and economical landscape in Mexico and opportunities in Spain. Special attention will be given to gift & inheritance tax, voluntary disclosure, planning in a transparent world, and investment & mobility plans into Spain.

Panelists: Paul DePasquale (New York), Jorge S. Narváez-Hasfura (Mexico City), Lizette Tellez De la Vega (Mexico City), Davinia Rogel (Miami/Barcelona)

4:15 pm - 4:30 pm Refreshment Break

4:30 pm - 5:30 pm Transfer Pricing in the Post-BEPS World & Getting the Most From the APA & Competent Authority Process

Transfer pricing disputes and litigation continue to increase. Mexican, US, and other national tax authorities have also restructured their operations and are becoming more aggressive in challenging structures that had presented little risk in the past. How should taxpayers respond to more assertive transfer pricing adjustments? How will competent authorities respond to these developments? This session will focus on practical insights for how taxpayers can manage their global transfer pricing risk and proactively engage tax authorities in ways that reduce risk and uncertainty.

Moderator: Salim R. Rahim (Washington, DC) Panelists: Edson Uribe (Subprocurador General en Prodecon), Carlos Pérez Gómez Serrano (Director of Transfer Pricing Audits, Mexican Tax Administration Service, SAT), Carlos Linares-García (Monterrey), Donna McComber (Washington, DC), and Christopher Raybould (Toronto)

5:30 pm Closing Remarks / Cocktail Reception

6:30 pm Dinner

Registration and additional Information:

To register for the seminar, visit www.bakermckenzie.com/tax/events to register online. For additional program information or to cancel your registration please send a note to taxnews@bakermckenzie.com.

There is no fee to attend, but registration is required and will be accepted on a first come, first served basis. This seminar is not open to other professional service providers.

©2019 Baker McKenzie. All rights reserved. Baker & McKenzie International is a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner or equivalent in such a law firm. Similarly, reference to an “office” means an office of any such law firm. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee similar outcomes.

Approved for 5.75 general California, Illinois, and Texas CLE credits, and 6.5 areas of professional practice New York CLE credits. Participants requesting CLE for other states will receive Uniform CLE Certificates. Baker & McKenzie LLP is a California and Illinois CLE approved provider. Baker & McKenzie LLP has been certified by the New York State CLE Board as an accredited provider in the state of New York for the period 12/12/18-12/11/21. This program is appropriate for both experienced and newly admitted New York attorneys. Baker & McKenzie LLP is an accredited sponsor, approved by the State Bar of Texas, Committee on MCLE.

This program can be applied towards the 9 Substantive Hours of Continuing Professional Development (CPD) required by the Law Society of Upper Canada. Please note that this program is not accredited for Professionalism hours.

Baker & McKenzie North America Tax Practice Group is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

MEXICO CITYJANUARY 3 1 , 2019

SEIZING OPPORTUNITIES AND NAVIGATING UNCERTAINTY FROM US & MEXICAN TAX REFORM

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Overnight Accommodations:

We have secured a discounted group rate on a limited number of guest rooms at the Hyatt Regency Mexico City. Rooms will be reserved on a first-come first-served basis. Please contact the Hyatt Regency directly to secure your room at +52 55 5083 1234, ext. 805 [guests within Mexico] or 011++52 55 5083 1238, ext. 8085 [international guests], and mention “Baker McKenzie Tax Meeting” to receive the discounted rates.

For additional hotel acommodations information, see the event registration website.

REGISTRATION

https://meetings.bakermckenzie.com/2019NATaxConference