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Mr. David Hutchings specializes in the economic analysis of complex business transactions.

He supports experts, performs statistical analyses, and leads case teams in analyzing and developing evidence to provide consulting support to attorneys.

Mr. Hutchings has extensive experience in tax disputes and transfer pricing matters, having supported experts and attorneys for both taxpayers and taxing authorities. He has focused on developing innovative economic analyses to assess the best method for transfer pricing, assessing the profitability of transactions, and investigating the business purpose doctrine. He also has experience in securities and commercial damages cases, having been involved in several disputes arising out of the financial crisis related to residential mortgage-backed securities, credit ratings, and financial guaranty insurance, which often involve dealing with large amounts of data and conducting detailed statistical analyses. In addition, his consulting experience includes assessing the economic impact of mergers and allegedly anticompetitive behavior.

Mr. Hutchings has worked with leading academics in both litigation and non-litigation settings. For example, he has supported Nobel laureate Joseph Stiglitz in a number of matters, including disputes regarding the Irish banking crisis, sovereign debt restructurings, and intellectual property protections, in addition to tax and securities matters.

Mr. Hutchings began his career at Brattle as a Research Analyst, and before that was a Research Associate at the MIT Center for Real Estate.

Representative Engagements
Assessed Best Method in Transfer Pricing Dispute
Supported lead testifying economist and trial attorneys in the recently-tried Eaton Corporation tax dispute on Section 482 and 367 matters. Applied various statistical and financial techniques to develop the best method and rebut opposing experts’ claims. Conducted extensive research into the industry to synthesize the competitive dynamics of the markets and inform the transfer pricing analysis. Decision is pending.
Alleged Breaches of Contract and Fraud in Residential Mortgage-Backed Securities
Led Brattle’s consulting support to attorneys and testifying experts on behalf of monoline insurers in a series of disputes regrading mortgage originators and RMBS sponsors concerning the quality of mortgage loans. Analyses focused on monitoring decisions in insurance and econometric and statistical analyses, as well as deposition support. Cases include Ambac v EMC (JPMorgan), which settled for $995 million in early 2016, and several pending, confidential matters.
Tax Dispute Regarding Like-Kind Exchange
Provided support to MIT Professor Stewart Myers in his testimony for Exelon in its recently-tried tax dispute regarding Section 1031 like-kind exchanges and Exelon’s purchase of coal-fired electrical plants. Analysis involved extensive financial analysis of leases, options, and assets. Decision is pending.
Foreign Tax Credit Generators, including Structured Trust Advantaged Repacked Securities (STARS)
Supported testifying expert and attorneys for the IRS and DOJ in the Bank of New York and Salem STARS cases where the government prevailed at trial and on appeal on issues of economic substance. Analyzed transaction cash flows, assessed business purposes, and developed evidence for trial.
Listed Transactions, including Offshore Portfolio Investment Strategy (OPIS)
Supported testifying expert and attorneys for the IRS in the Blum and Reddam OPIS cases where the IRS prevailed at trial and on appeal regarding the economic substance of claimed capital losses. Analyzed complex option arrangements using analytical and simulation techniques, modeled the likelihood of very-low outcome events, and assessed rates of return on a piece-by-piece and overall basis.
Publications
Article
An Economic Framework for Identifying the Tested Party
November 30, 2015
Published in Tax Notes
Report
Can the U.S. Congressional Ethanol Mandate be Met?
May 2010
Published by The Brattle Group, Inc.
News & Events
February 15, 2018
Evan Cohen and David Hutchings to Participate in The Knowledge Group Webinar on Transfer Pricing Guidelines

Brattle Principal Evan Cohen and Senior Associate David Hutchings will participate in The Knowledge Group’s webinar, “Recent Trends and Developments on the Organization for Economic Cooperation and Development’s (OECD) Transfer Pricing Guidelines: What You Need to Know,” taking place February 15, 2018 from 12-2 pm (EST).

August 17, 2017
Brattle Economists to Present on The Knowledge Group’s Webinar on Global Transfer Pricing Litigation

Brattle Senior Associates Christine Polek and David Hutchings will present on The Knowledge Group’s webinar, “Global Transfer Pricing Litigation: Trends and Developments Explored,” taking place August 17, 2017 from 12-2 pm EST.

July 11, 2017
Brattle Economists Contribute to IRS Victory in Tax Dispute Regarding Value of Residual Interests

In a recent ruling from Judge Halpern of the United States Tax Court, a deduction claimed by RERI Holdings I, LLC for a 2003 donation to the University of Michigan was denied, with the Court upholding penalties for a gross valuation misstatement.

December 03, 2015
Michael Cragg and David Hutchings Publish Tax Notes Article Providing an Economic Framework for Identifying the Tested Party

Brattle principal Michael Cragg and associate David Hutchings recently published an article in Tax Notes discussing an economic framework for determining the tested party under the standard comparable profit method (CPM) for transfer pricing. Their proposed framework is consistent with the guidance under both the OECD guidelines and U.S. tax law.

Personal Interests

David is originally from the west coast of Newfoundland, having relocated to Toronto from the Boston area when Brattle’s Toronto office opened. He has been an active volunteer at MIT for many years, presently as an Educational Counselor in Toronto and previously with several student life groups in Cambridge and Brookline, MA.

In his spare time, David enjoys playing the piano and trumpet, fly fishing, downhill skiing, and golf.