What’s New at IIC

Are Americans Really Gaining Energy Independence?

A recent Bloomberg news article claims a large increase in energy production in the United States has put Americans on the path to gaining energy independence. According to the article, increases in domestic oil and natural gas production could lead the United States to become the top energy producer by 2020, which it argues would result in a number of benefits, including cutting the trade deficit and allowing for greater flexibility when dealing with unrest in the Middle East. Bloomberg is correct that energy production has increased recently, but the increase is largely attributable to one type of resource: natural gas. Read more

Is the Trans Alaska Pipeline System in Danger of Being Shut Down?

IIC, Inc. recently analyzed the argument that declining levels of throughput exposed the Trans Alaska Pipeline System (TAPS) to the danger of being shut down in the near future. Advocates for greater domestic access claim that without opening up new areas to drilling, TAPS is in danger of being shut down.1 TAPS is the only mode for transporting the oil from Alaska’s North Slope to market, which means that a shutdown of the pipeline could strand all remaining oil in the North Slope. Read more

What Are the Actual Taxes Paid by U.S. Multinational Oil Companies to the Federal Government?

At hearings before the U.S. Senate in May 2011, executives of the major, multinational oil companies complained bitterly about Congressional initiatives that would increase U.S. taxes on these companies. These executives pointed to higher “effective tax rates” that these companies already pay as evidence that increasing the tax burden on these companies would be unfair. At a time when the five major multinational oil companies are reporting record profits yet again, it is worth evaluating the purported claim that these companies actually pay the highest tax rates among U.S. companies. Read more

Municipal Tax Classification Decision

Peter Ashton, President of IIC, Inc. recently consulted to the Wellesley (Massachusetts) Chamber of Commerce in defense of a uniform tax rate in the town. The Wellesley Board of Selectmen were considering whether to impose a split tax rate that would have taxed local businesses at a higher rate than residential taxpayers, an option permitted under Massachusetts state law. Read more

Conference Highlights International Taxation Issues

Lee O. Upton, III, a Principal at IIC, Inc., recently returned from Washington, DC, where he attended the 24^th Annual Institute on Current Issues in International Taxation. The two-day conference featured a variety of federal government and private sector speakers discussing a wide range of issues facing multinational corporations and government revenue agencies. Key panels included discussions of competent authority, efficiency in transfer pricing enforcement and compliance, foreign tax credits and updates on a variety of soon-to-be released updates to the Internal Revenue Code. Read more

Supply and Demand for Tar Sands

IIC, Inc. recently analyzed projections of the supply and demand for crude oil including tar sands produced in Western Canada. The purpose of this analysis was to evaluate the logistics for moving this supply out of the Western Canada area to various refining markets around the globe. Read more

IIC, Inc. Analyzes New Cost Sharing Regulations

IIC Inc. has analyzed the IRS’s temporary regulations relating to cost sharing arrangements (§ 1.482-7T). Effective January 5, 2009, these temporary regulations build upon the proposed regulations from 2005 and contain a number of methodological, terminological and administrative changes from the previous cost sharing regulations which have been in place since 1995. IIC, Inc. has developed a brief presentation providing further analysis of the new temporary cost sharing regulations. Read more

Estimating Damages from Loss of Business

IIC, Inc., recently estimated the damages resulting from a loss of business stemming from an alleged breach of contract between two firms in the equipment leasing industry. The alleged breach of contract was between an equipment leasing company and a company that served as one of its sources of funding. Read more

Pitching Corporate Tax Reform to Business

In a recent speech before the U.S. Chamber of Commerce, President Obama discussed a key responsibility of government: breaking down barriers that limit the successfulness of U.S. businesses. One area the President focused on was alleviating a “burdensome corporate tax code with one of the highest rates in the world.” Read more

Coal to Liquids (Alternative Fuel)

IIC, Inc. recently completed an analysis of the impact of oil price volatility on the financial viability of investment in coal to liquids technology. IIC, Inc. collected information about coal to liquids plant investments and normalized certain assumptions in the financial models so that they could be evaluated on a comparative basis. This information was used to develop a range of crude oil prices for which a coal to liquids investment would yield the required rate of return. Read more

Testimony on Just and Reasonable Rates for Pipelines

IIC, Inc. recently provided expert testimony regarding just and reasonable rates for a major refined products pipeline system in California. Peter K. Ashton, cofounder and principal of IIC, Inc., provided testimony on the cost of service and achieved return earned by the pipeline owner, demonstrating that the rates being charged were not just and reasonable and furthermore, that the pipeline’s request for rate increases could not be justified. Read more

Oil Pipeline Rate Regulation

IIC, Inc. recently assisted one of its clients settle several outstanding claims relating to rates charged on various interstate petroleum pipelines. IIC, Inc. developed a comprehensive cost of service model indicating that the rates charged by the pipeline company unjust and unreasonable. Read more

Analysis of the New §1.482 Services Regulations
The Internal Revenue Service revised services regulations that provide new transfer pricing methods for controlled service transactions and include a revised cost safe harbor called the Services Cost Method (SCM). This brief presentation provides a helpful overview to the changes in the regulations for tax planners and examiners. Read more

History

IIC, Inc. began operations in 1984 in Boston, Massachusetts with a staff of two. As our practice grew, we moved to Cambridge in 1986, and hired additional staff.

We remained in Cambridge for ten years and moved to Concord as the advent of new research technology, i.e., the Internet, made location less important to our business. For a period of five years, the firm maintained an office in the Washington, D.C. area and five years ago opened an office in Florida.

The firm has maintained its policy of remaining small, fluctuating in size between five and ten professionals. We strongly believe that our small size enables us to provide personal service to our clients and to deliver high quality work product at a relatively modest cost. Our size has never inhibited us from working on large scale projects and issues – indeed some projects we have worked on have involved claims for many billions of dollars. When the scope of a project has demanded additional personnel or specialized skills beyond our expertise, we have partnered with others to deliver superior results.


About IIC Our Work Clients Approach to Management Offices History The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one. Mark Twain		What’s New at IIC Are Americans Really Gaining Energy Independence? A recent Bloomberg news article claims a large increase in energy production in the United States has put Americans on the path to gaining energy independence. According to the article, increases in domestic oil and natural gas production could lead the United States to become the top energy producer by 2020, which it argues would result in a number of benefits, including cutting the trade deficit and allowing for greater flexibility when dealing with unrest in the Middle East. Bloomberg is correct that energy production has increased recently, but the increase is largely attributable to one type of resource: natural gas. Read more Is the Trans Alaska Pipeline System in Danger of Being Shut Down? IIC, Inc. recently analyzed the argument that declining levels of throughput exposed the Trans Alaska Pipeline System (TAPS) to the danger of being shut down in the near future. Advocates for greater domestic access claim that without opening up new areas to drilling, TAPS is in danger of being shut down.1 TAPS is the only mode for transporting the oil from Alaska’s North Slope to market, which means that a shutdown of the pipeline could strand all remaining oil in the North Slope. Read more What Are the Actual Taxes Paid by U.S. Multinational Oil Companies to the Federal Government? At hearings before the U.S. Senate in May 2011, executives of the major, multinational oil companies complained bitterly about Congressional initiatives that would increase U.S. taxes on these companies. These executives pointed to higher “effective tax rates” that these companies already pay as evidence that increasing the tax burden on these companies would be unfair. At a time when the five major multinational oil companies are reporting record profits yet again, it is worth evaluating the purported claim that these companies actually pay the highest tax rates among U.S. companies. Read more Municipal Tax Classification Decision Peter Ashton, President of IIC, Inc. recently consulted to the Wellesley (Massachusetts) Chamber of Commerce in defense of a uniform tax rate in the town. The Wellesley Board of Selectmen were considering whether to impose a split tax rate that would have taxed local businesses at a higher rate than residential taxpayers, an option permitted under Massachusetts state law. Read more Conference Highlights International Taxation Issues Lee O. Upton, III, a Principal at IIC, Inc., recently returned from Washington, DC, where he attended the 24^th Annual Institute on Current Issues in International Taxation. The two-day conference featured a variety of federal government and private sector speakers discussing a wide range of issues facing multinational corporations and government revenue agencies. Key panels included discussions of competent authority, efficiency in transfer pricing enforcement and compliance, foreign tax credits and updates on a variety of soon-to-be released updates to the Internal Revenue Code. Read more Supply and Demand for Tar Sands IIC, Inc. recently analyzed projections of the supply and demand for crude oil including tar sands produced in Western Canada. The purpose of this analysis was to evaluate the logistics for moving this supply out of the Western Canada area to various refining markets around the globe. Read more IIC, Inc. Analyzes New Cost Sharing Regulations IIC Inc. has analyzed the IRS’s temporary regulations relating to cost sharing arrangements (§ 1.482-7T). Effective January 5, 2009, these temporary regulations build upon the proposed regulations from 2005 and contain a number of methodological, terminological and administrative changes from the previous cost sharing regulations which have been in place since 1995. IIC, Inc. has developed a brief presentation providing further analysis of the new temporary cost sharing regulations. Read more Estimating Damages from Loss of Business IIC, Inc., recently estimated the damages resulting from a loss of business stemming from an alleged breach of contract between two firms in the equipment leasing industry. The alleged breach of contract was between an equipment leasing company and a company that served as one of its sources of funding. Read more Pitching Corporate Tax Reform to Business In a recent speech before the U.S. Chamber of Commerce, President Obama discussed a key responsibility of government: breaking down barriers that limit the successfulness of U.S. businesses. One area the President focused on was alleviating a “burdensome corporate tax code with one of the highest rates in the world.” Read more Coal to Liquids (Alternative Fuel) IIC, Inc. recently completed an analysis of the impact of oil price volatility on the financial viability of investment in coal to liquids technology. IIC, Inc. collected information about coal to liquids plant investments and normalized certain assumptions in the financial models so that they could be evaluated on a comparative basis. This information was used to develop a range of crude oil prices for which a coal to liquids investment would yield the required rate of return. Read more Testimony on Just and Reasonable Rates for Pipelines IIC, Inc. recently provided expert testimony regarding just and reasonable rates for a major refined products pipeline system in California. Peter K. Ashton, cofounder and principal of IIC, Inc., provided testimony on the cost of service and achieved return earned by the pipeline owner, demonstrating that the rates being charged were not just and reasonable and furthermore, that the pipeline’s request for rate increases could not be justified. Read more Oil Pipeline Rate Regulation IIC, Inc. recently assisted one of its clients settle several outstanding claims relating to rates charged on various interstate petroleum pipelines. IIC, Inc. developed a comprehensive cost of service model indicating that the rates charged by the pipeline company unjust and unreasonable. Read more Analysis of the New §1.482 Services Regulations The Internal Revenue Service revised services regulations that provide new transfer pricing methods for controlled service transactions and include a revised cost safe harbor called the Services Cost Method (SCM). This brief presentation provides a helpful overview to the changes in the regulations for tax planners and examiners. Read more History IIC, Inc. began operations in 1984 in Boston, Massachusetts with a staff of two. As our practice grew, we moved to Cambridge in 1986, and hired additional staff. We remained in Cambridge for ten years and moved to Concord as the advent of new research technology, i.e., the Internet, made location less important to our business. For a period of five years, the firm maintained an office in the Washington, D.C. area and five years ago opened an office in Florida. The firm has maintained its policy of remaining small, fluctuating in size between five and ten professionals. We strongly believe that our small size enables us to provide personal service to our clients and to deliver high quality work product at a relatively modest cost. Our size has never inhibited us from working on large scale projects and issues – indeed some projects we have worked on have involved claims for many billions of dollars. When the scope of a project has demanded additional personnel or specialized skills beyond our expertise, we have partnered with others to deliver superior results.