Taxation and Valuation of Technology:

Theory Practice, and the Law

Overview

Taxation and Valuation of Technology: Theory, Practice, and the Law, edited by James L. Horvath and David W. Chodikoff, is a comprehensive and authoritative examination of practical, technical, and legal aspects of business valuation and taxation in the dynamic technology sector. The book features contributions by distinguished judges, leading academics, and international experts in business valuation and tax law.

Reviews

“Technology, taxation, and valuation are inescapable facts of life … this remarkable volume provides timely assistance and authoritative guidance. … The range of authors is impressive, enabling the reader to draw on the diverse observations and experiences of distinguished jurists, academics, private and public sector lawyers, business valuators, and other financial service professionals. … [A]n impressive collection of relevant materials."

The Honourable Mr. Justice Morris J. Fish, The Supreme Court of Canada

"In today’s rapidly changing regulatory environment that is putting increased pressure on both the quantity and quality of valuation and tax products, it is imperative that business valuation and tax practitioners, private equity participants, lenders, and M&A specialists have access to authoritative and comprehensive discussions on key business growth sectors such as technology. Taxation & Valuation of Technology clearly serves this purpose and is a must read for all those venturing into this highly-fluid and often incomprehensible space."

Brad Dalgliesh, Senior Valuations Partner, KPMG LLP, Toronto

"This book represents a valuable, comprehensive treatment of the great many topics included within the subject-matter. The editors have successfully assembled the wide range of skill sets —from accountants to lawyers, and from judges to academics— required to offer insight across the broad landscape addressed."

Barry Reiter, Senior Partner, Bennett Jones LLP

"A must-have building block for the bookshelf of any tax lawyer, valuation practitioner, and corporate officer. It delves into cultural and technical issues. Jim and David have brought together some of world's most talented people in the areas taxation and valuation. This is a reference text that will serve the taxation, valuation, legal, and business communities well."

Ashish Gandhi, Corporate Controller, OFS, Atlanta

“Strong investment in research and technology is crucial to ensuring Canada’s place in the world. The authors have come together to produce a text that is an informative useful resource both for professionals offering advice and for entrepreneurs making investment decisions.”

Honourable Susan E. Whelan, former chair of the Standing Committee on Industry, Science and Technology

Table of Contents

Foreword
Hon. Morris J. Fish, Supreme Court of Canada

Preface

Introduction

Part One: Taxation

Chapter 1. The Judicial Determination of Fair Market Value
Hon. Karen R. Sharlow

Chapter 2. What to Expect from the Tax Court in a Lengthy Trial
Hon. Campbell Miller

Chapter 3. Effective Conduct of Commercial Litigation: A Judge’s Perspective
Hon. Ian H. Pitfield

Chapter 4. Tax Shelters, Technology, and the Future? The Demise of the Software Tax Shelter and Lessons to be Learned for the Investor
David W. Chodikoff & Natalia E. Bitton

Chapter 5. It’s the Destination, Not the Journey: The Significance of the Tax Assessment Process in Tax Appeals
Harry Erlichman & Elizabeth Chasson

Chapter 6. Permanent Establishment and the Challenges of ElectronicCommerce
David E. Spiro & Kate Lazier

Chapter 7. Bet on It: The Taxation of Online Gaming
Benjamin Alarie & Alex Igelman

Chapter 8. Tax Treaty Treatment of Royalty Payments from Low-Income Countries: A Comparison of Canada and Australia’s Policies
Kim Brooks

Chapter 9. Tax Discrimination and the Trade in Services between Canada and the United States: Deciphering the Landscape
Catherine Brown & Christine Manolakas

Chapter 10. R& D Credits: Reducing the Cost of Innovation
Ken Murray & Natan Aronshtam

Chapter 11. Interpretative Issues Regarding SR& ED Tax Credits: An Overview of Recent SR& ED Tax Cases and Related Implications for Claimants
David Sabina

Chapter 12. Inbound Transfers of Technology
Brian D. Segal

Chapter 13. Alternate Models for Acquiring Technology Products and Services
J. Fraser Mann

Chapter 14. “Old Wine in New Wineskins”? Indirect Tax Challenges for International Transfers of Intangible Property 341
Jim Vincze & M. Craig Robertson

Chapter 15. Transfer Pricing the Technology
Muris Dujsic & Tony Anderson

Chapter 16. The Evolution of the Use of Cost Sharing Arrangements in International Income Tax Planning and New Indications for Valuing Intellectual Property
Keith Reams, Alan Shapiro, Laura Clauser, Jon Hakken, Ahmad Keshk, & Mark Klitgaard

Chapter 17. The U.S. International Taxation of the Transfer of Technology by American Enterprises: A Primer for the CFO, Tax Director, and Foreign Tax Advisor
David S. Kerzner

Chapter 18. Going Global: Some Foreign Tax Fundamentals for the Expanding Technology Enterprise
Christopher Grasset

Part Two: Valuation

Chapter 19. Valuation Methodologies: The Current Art and Science
James L. Horvath & Tim Dunham

Chapter 20. The Invisible Path: Valuing Technology
James L. Horvath & Richard Ellsworth

Chapter 21. Valuation of Biotechnology Companies and their Assets
Jeremy Webster & Bill Stamatis

Chapter 22. Transfer and Valuation of Biomedical Intellectual Property
Cristina Thalhammer-Reyero

Chapter 23. Protected Assets: Valuing Patents
James L. Horvath & Steven Hacker

Chapter 24. Discounts and Premiums: Artistic Licence and Science
James L. Horvath & Tim Dunham

Chapter 25. Valuing Businesses in the Ever-changing Global Marketplace
James L. Horvath

Chapter 26. Tips from the Field
James L. Horvath & Tim Dunham

Chapter 27. Technology Valuations and the Canada Revenue Agency
Dennis Turnbull

Chapter 28. The Investor’s Approach to Valuation of Early-Stage Technology Companies
John Hague & Roger Wilson

Chapter 29. Tips from the Top

Chapter 30. Intellectual Property and Damage Quantification
Jeffrey Harder, Joelle Gott, J. Kevin Wright, & Paul R. Albi

Chapter 31. Growth by Design: How Good Design Drives Value
Maneesh Mehta

Chapter 32. Technology Transfer: An Overview with a Government Research Perspective, or, Sometimes it is a Platypus not a Duck!
Stan Benda

Contributors

Of interest...