Skip to Main Content

Tax Controversy & Transfer Pricing

The Brattle Group has been retained by taxpayers and tax authorities worldwide to provide expert testimony and consulting services for the last 25 years.

Our principals and a broad network of academic and industry experts have testified and/or submitted expert reports in over one hundred tax matters, both in the U.S. and abroad. Our economic analyses and opinions are often cited extensively and favorably in landmark legal decisions.

Dozens of Fortune 500 companies and governments have retained us as consulting and testifying experts in tax disputes. Our clients include the tax controversy groups at leading law firms, taxing authorities, and corporations worldwide.

Brattle has assisted clients at all stages of tax disputes including audit, appeals, settlements, and trial. We supply financial and economic analyses applicable to key judicial doctrines, such as the economic substance, step transaction, and business purpose doctrines, and the arm’s-length principle. In addition, we assist our clients with tax planning, including advance pricing agreements analysis and documentation. We have also advised clients on tax policy issues that have been presented to the White House, the Joint Committee on Taxation, and various governmental agencies.

Our approach is to integrate with client teams and work closely throughout case development. We provide financial, economic, accounting, and industry expertise tailored to the needs of the case. We have extensive experience in hosting, managing, and working with large document sets and big data. Ultimately, we recognize that what matters most are clear communication, credibility, creativity, and responsiveness.

Areas of Expertise
CASE HIGHLIGHT

Brattle secures favorable ruling for the United States government in dispute over a distressed asset/debt transaction.

CASE HIGHLIGHT

Testimony of Brattle Principal Yvette Austin Smith Contributes to Win for United States Steel Corporation in Debt/Equity Classification of Intercompany Debt

NEWS

Brattle Principal Bin Zhou recently co-authored an article published in Tax Notes about how the Tax Cuts and Jobs Act (TCJA) will affect a company’s capital structure and the after-tax weighted average cost of capital (COC).

Engagements
Experts
Principals
Principal Emeritus
Academic Advisor & Other Outside Experts
Shannon W. Anderson
Academic Advisor
University of California, Davis, Graduate School of Management
View Bio
John R. Graham
Academic Advisor
Duke University
View Bio
Richard K. Green
Academic Advisor
University of Southern California
View Bio
Edward Maydew
Academic Advisor
University of North Carolina, Chapel Hill
View Bio
Gilbert E. Metcalf
Academic Advisor
Tufts University
View Bio
Senior Associates
Publications
Article
Real Options, Taxes and Financial Leverage
2018
Published in Critical Finance Review (Forthcoming)
Article
Effects of New Tax Law on Capital Structure and Cost of Capital
March 12, 2018
Dirk Hackbarth and Bin Zhou
Published in Tax Notes, Vol. 158, No. 11

Brattle Principal Bin Zhou recently co-authored an article published in Tax Notes about how the Tax Cuts and Jobs Act (TCJA) will affect a company’s capital structure and the after-tax weighted average cost of capital (COC).

Report
The Impact of a Border-Adjustment Tax on the U.S. Insurance Market
November 17, 2017
Michael I. Cragg, Bin Zhou, Jehan deFonseka, and Lawrence Powell
Prepared for the Coalition for Competitive Insurance Rates and funded by the Association of Bermuda Insurers and Reinsurers

A new study co-authored by Brattle economists examines the impact that a Border Adjustment Tax (BAT) could have had on the U.S. insurance market.

Article
Response on Offshore Reinsurance Tax
October 16, 2017
Michael I. Cragg, Jehan deFonseka, Bin Zhou, and Lawrence Powell
Published in Tax Notes
Article
Trump's infrastructure tax credits—Lasting legacy or private sector giveaway?
February 23, 2017
Elaine Buckberg
Published in Bloomberg Government

Elaine Buckberg poses some critical questions to help assess whether the Trump tax credits will leave a legacy of economically important projects or subsidize private investments with little public benefit.

Report
The Impact of Offshore Affiliate Reinsurance Tax Proposals on the U.S. Insurance Market: An Updated Economic Analysis
January 23, 2017
Michael I. Cragg, Jehan deFonseka, Bin Zhou, and Lawrence Powell
Published in Tax Notes, Volume 154, Number 11

This is an excerpt from the report titled “The Impact of Offshore Affiliate Reinsurance Tax Proposals on the U.S. Insurance Market,” originally published on January 23, 2017. This excerpt is focused the economic impact of the border adjustment provision contained in the Republican’s Blueprint tax reform proposal.

Article
The Interaction of Managerial and Tax Transfer Pricing
January 21, 2016
Published in Bloomberg BNA Tax Management Transfer Pricing Report

The authors examine the differences between transfer prices used for tax and for management purposes, emphasizing the need to explain the differences to tax authorities who may question the company’s motives.

Article
A Theory of Risk Capital
December 2015
Published in the December 2015 issue of Journal of Financial Economics
Article
An Economic Framework for Identifying the Tested Party
November 30, 2015
Published in Tax Notes
Article
Corporate Inversion Transactions: Valuation Considerations
August 03, 2015
Evan Cohen, Michael I. Cragg, Jehan deFonseka, and Ryan Tholanikunnel
Published in Tax Notes
Article
The Implications of Transfer Pricing in Bankruptcy
May 29, 2015
Bin Zhou and Steven D. Felgran
Published in Bloomberg BNA
Article
Inequities in Tax Policy
May 04, 2015
Michael I. Cragg and Rand Ghayad
Published in the Huffington Post
Article
An Economic Evaluation of 'Funding' for Research Tax Credits
September 29, 2014
Published in Tax Notes
Presentation
Super-Normal Profits, Intangibles, and Tax Policy: The Role of Economics
August 01, 2013
Presented at the National Association for Business Economics (NABE) Transfer Pricing Symposium, Arlington, VA
Report
Real Options, Taxes and Financial Leverage
June 2012
Published by National Bureau of Economic Research, Working Paper No. 18148
News & Knowledge
July 17, 2018
Bin Zhou to Speak at the NABE Transfer Pricing Symposium

Brattle Principal Bin Zhou will speak at the National Association for Business Economics (NABE) Transfer Pricing Symposium to be held July 17-19, 2018, in Washington, D.C.

April 23, 2018
Brattle Experts' Paper on Real Options Forthcoming in Critical Finance Review

In a forthcoming paper in Critical Finance Review, Brattle Principals Stewart Myers and James Read derive a procedure for calculating after-tax values of real options, including the value of interest tax shields on debt supported or displaced by the options.

April 10, 2018
Jehan deFonseka to Participate in Knowledge Group Webinar on Transfer Pricing

Brattle Senior Associate Jehan deFonseka will participate in The Knowledge Group’s webinar, “The Changing Landscape of Transfer Pricing in the U.S. Explored,” taking place April 10, 2018 from 12:00-1:30 pm (ET).

March 12, 2018
Bin Zhou Co-authors Article on the Effects of the Tax Cuts and Jobs Act on Capital Structure and Cost of Capital

Brattle Principal Bin Zhou recently co-authored an article published in Tax Notes about how the Tax Cuts and Jobs Act (TCJA) will affect a company’s capital structure and the after-tax weighted average cost of capital (COC).

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).

January 19, 2018
The Brattle Group Introduces Its Newest Experts

The Brattle Group is pleased to introduce the seven exceptional experts who became Brattle principals over the past year.

November 17, 2017
Brattle Economists Study Impact of Reinsurance Taxes on the U.S. Insurance Market

A new study co-authored by Brattle economists examines the impact that a Border Adjustment Tax (BAT) could have had on the U.S. insurance market.

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.

August 04, 2017
Matthew Aharonian to Present on The Knowledge Group’s Webinar on New Debt-Equity Regulations

Brattle Senior Associate Matthew Aharonian will present on The Knowledge Group’s webinar, “Understanding the Impact and Implications of the New Debt-Equity Regulations,” taking place August 4, 2017 from 3-4 pm EST.

August 02, 2017
U.S. Tax Court Cites Testimony of A. Lawrence Kolbe in IRS Tax Shelter Case Decision

In two recently-concluded U.S. Tax Court cases the judge cited the testimony of Brattle Principal Emeritus A. Lawrence Kolbe in his opinion, ruling in favor of the Internal Revenue Service (IRS).

July 20, 2017
Valuation and Commercial Damages Expert Chris Polson Joins The Brattle Group

The Brattle Group is pleased to announce that Chris Polson, a valuation and commercial damages expert, has joined the firm’s Toronto office as a principal.

July 19, 2017
Michael Cragg to Present at National Association for Business Economics Transfer Pricing Symposium

Brattle Principal Michael Cragg will present at the 7th Annual National Association for Business Economics (NABE) Transfer Pricing Symposium, taking place July 18-20, 2017 in Washington, DC.

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.

February 23, 2017
Brattle Principal Elaine Buckberg Authors Op-Ed: "Trump's Infrastructure Tax Credits—Lasting Legacy or Private Sector Giveaway?"

In his inaugural address, President Trump committed to “transform America’s crumbling infrastructure.” But his infrastructure plan, which would provide significant tax credits to companies that invest in the country’s infrastructure, provides few details.

January 23, 2017
Brattle Report Highlights The Economic Impact Of The Offshore Affiliate Reinsurance Tax

A report co-authored by economists at global consulting firm The Brattle Group finds that newly-proposed tax legislation aiming to defer the recognition of affiliated offshore reinsurance for U.S. tax purposes will negatively impact businesses and consumers in the United States.

August 10, 2016
Michael Cragg to Present on Transfer Pricing Audits in Knowledge Group Webinar

Brattle Principal and Chairman Michael Cragg will present in the upcoming Knowledge Group webinar, “Transfer Pricing Audits in the Realm of Regulatory Tsunamis: How Prepared Are You?” The live webinar will take place on August 10, 2016 from 12:00 – 2:00 pm EST.

July 20, 2016
Michael Cragg to Present at National Association for Business Economics Transfer Pricing Symposium

Brattle Principal Michael Cragg will present at the 6th Annual National Association for Business Economics (NABE) Transfer Pricing Symposium, taking place July 19-21, 2016 in Washington, DC.

January 08, 2016
Brattle Economists Author Article on Risk Capital for the Journal of Financial Economics

Brattle Principals Stewart Myers and James Read, along with Ohio State Professor Isil Erel, published an article on risk capital in the December 2015 issue of the Journal of Financial Economics.

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.

September 09, 2015
Brattle Principal Philip Hanser to Speak at Distributed Power Webinar

Brattle principal Philip Hanser will present on the topic of distributed power during a webinar hosted by Dorsey & Whitney on September 9, 2015.

August 03, 2015
Brattle Economists Author Article in Tax Notes on Corporate Inversions

Brattle principals Michael Cragg and Evan Cohen, associate Jehan deFonseka, and research analyst Ryan Tholanikunnel recently authored the article, “Corporate Inversion Transactions: Valuation Considerations,” featured in the July edition of Tax Notes International.

July 29, 2015
Michael Cragg and Rand Ghayad Publish a Research Paper in The Economists’ Voice Journal on Tax Policy and Economic Inequality

Brattle principal Michael Cragg and associate Rand Ghayad recently co-authored a research paper in The Economists’ Voice Journal, “Growing Apart: The Evolution of Income vs. Wealth Inequality,” addressing the negative impact of tax inequality on the economy and society.

July 21, 2015
Michael Cragg to Present at the Fifth Annual NABE Transfer Pricing Symposium

Brattle principal Michael Cragg will present at the Fifth Annual NABE Transfer Pricing Symposium, taking place on July 21-23, 2015 in Washington, DC.

June 01, 2015
Bin Zhou Co-Authors Bloomberg BNA Article on the Role of Transfer Pricing in Bankruptcy

Brattle principal Bin Zhou recently co-authored an article published in Bloomberg BNA, “The Implications of Transfer Pricing in Bankruptcy,” in which the authors discuss the lessons learned from transfer pricing arrangements featured in the allocation of liquidation proceeds in Nortel’s bankruptcy trials.

April 23, 2015
Bin Zhou to Present at University of San Diego School of Law’s Third Annual Transfer Pricing Symposium

Brattle principal Bin Zhou will be a panelist at the University of San Diego School of Law’s Third Annual Transfer Pricing Symposium, taking place April 23-24, 2015 in San Diego, CA.

January 16, 2015
Brattle Economists Sign Amicus Brief in Support of Defendants Actavis PLC in Pharmaceuticals Antitrust Case

Brattle economists Lisa Cameron and Steven Herscovici recently assisted in preparing an amici curiae brief in support of the defendants-appellants Actavis PLC and its subsidiary, Forest Laboratories LLC, in an antitrust case in the United States Court of Appeals for the Second Circuit.

September 29, 2014
Brattle to Co-Host Seminar on the New Rules of the London Court of International Arbitration

Brattle will co-present the upcoming seminar, “The New London Court of International Arbitration (LCIA) Arbitration Rules,” which will take place on September 29, 2014 in Washington DC.

September 29, 2014
Darrell Chodorow and Shaun Ledgerwood Publish Article for Tax Notes on Funding for Research Tax Credits

Dr. Shaun Ledgerwood and Mr. Darrell Chodorow published an article in the September 2014 issue of Tax Notes in response to a recent summary judgment order in Geosyntec Consultants Inc. v. United States, presenting an alternative approach based on the economics of risk and reward allocation for contracts.

September 18, 2014
Mike Cragg and Evan Cohen to Discuss the Use of Testifying Experts at the ABA Tax Section Fall Meeting

Brattle principals Mike Cragg and Evan Cohen have been selected to serve as panelists at the American Bar Association Tax Section’s fall meeting, where they will present their spotlight discussion “Experts in the Trenches: Risk, Fair Rewards, Economic Substance, and Shams.”

June 17, 2014
Testimony by Principal Lawrence Kolbe Cited in Ruling to Uphold Decision in Offshore Portfolio Investment Strategy (OPIS) Tax Dispute

Principal Dr. Lawrence Kolbe provided testimony on behalf of the U.S. Internal Revenue Service that aided in upholding a favorable decision in an Offshore Portfolio Investment Strategy (OPIS) tax dispute.