University of California at Berkeley
Before becoming a tax professional and working as assistant treasury secretary for the United States Treasury Department, Michael Mundaca attended the University of Chicago where he earned a master of arts in philosophy. Michael Mundaca also attended the University of California at Berkeley’s law school where he earned his juris doctor. While Michael was at Berkeley, he was selected to the Order of the Coif, an honorary scholastic society the purpose of which is to encourage excellence in legal education, and served as Senior Executive Editor of the California Law Review.
Founded in 1912 as the School of Jurisprudence, Berkeley Law offers a wide variety of programs for students who are interested in studying the law. For those who desire to pursue a career in the legal profession, Berkeley Law features a JD program that helps to prepare students to pass the bar exam.
One of the premier law schools in the country, the JD program at Berkeley Law accepts about one applicant for every ten that apply. The program’s curriculum for first year students includes subjects, such as torts, property laws, contracts, and civil procedures.
Alexander Hamilton Award
Michael Mundaca is co-director of the Americas Tax Center and the National Tax Department at the global professional services firm EY. Just prior to taking on those roles, Michael Mundaca served in the United States Treasury Department’s Office of Tax Policy, during both the Bush and Obama administrations (and he had previously served during the Clinton Administration). During the Obama administration, he served as the Assistant Treasury Secretary for Tax Policy, at the appointment of the President, advising Treasury Secretary Tim Geithner on all matters relating to tax policy and representing the United States in various international forums, including the Organisation for Economic Co-operation and Development. Upon leaving the Treasury Department in 2011, Michael Mundaca received the Alexander Hamilton Award.
The Treasury’s Alexander Hamilton Award is the highest honor bestowed by the department. Established in 1955, the award is conferred not by nomination or vote but rather is chosen personally by the secretary of the Treasury.
A former assistant treasury secretary for tax policy with the US Treasury Department, Michael Mundaca now serves as Ernst & Young’s (EY) co-director of the Americas Tax Center and National Tax Department. In those roles, Michael Mundaca provides client-driven services that focus on US and international taxation rules and developments.
A recent EY Global Tax Alert drew focus to Nicaraguan transfer pricing rules, which went into effect in late June 2017. Enacted as law by the Nicaraguan Congress in 2012, the rules were intended to go into effect four years later (entry into force was later delayed an additional year).
Transfer pricing comes into play when company divisions transact with one another and are measured and treated as entities that are independently run. The newly implemented Nicaraguan rules require the preparation of transfer pricing documentation each year and incorporate the arm’s-length principle. They also set forth transfer pricing methods employed when applying the arm’s-length principle, as well as criteria that taxpayers must adhere to when undertaking a comparability analysis.
MAP Taxation Assistance
Michael Mundaca serves as Ernst & Young’s (EY) National Tax Department and Americas Tax Center co-director, leveraging past tax policy experience with the US Treasury Department.
A recent article in the EY Global Tax Alert focused on a 2017 deadline for multinational companies under FY 2012 tax audit within Mexico. According to the US-Mexico tax treaty, taxpayers generally are given 4.5 years from the income tax return filing date to provide the US or Mexican government with a request for mutual agreement procedures (MAP) assistance.
According to the EY article, meeting the deadline for notifying either government of the need for suspension of the MAP assistance deadline is critical for entities seeking to avoid issues such as double taxation. Lacking a letter providing authorization of suspension, companies may not be able to access MAP assistance.