Dr. Richard Sciacca is an industrial organization economist with more than 35 years of experience specializing in financial analysis and valuation, royalty and intangibles valuation, commercial damages estimation, tax economics controversy, M&A due diligence, and applied statistics and econometrics. Dr. Sciacca has substantial project experience in numerous industries, including healthcare and pharmaceutical/biotechnology manufacturing, auto and auto parts manufacturing, hotel and restaurant services, software, primary metals, commodity and specialty chemicals, oil and gas drilling and refining, electric and gas, pulp and paper manufacturing, and consumer products and services industries. He is also an experienced economics negotiator, and has project experience representing major multinational groups and the IRS in more than 75 international tax disputes. He was also a key economics contributor to US IRS regulatory initiatives in intangibles valuation and R&D cost sharing and the US Department of Justice/FTC vertical merger enforcement guidelines.
Prior to joining Bates White, Dr. Sciacca was Director and Senior Economics Advisor for Deloitte Tax LLP’s National APA and CA Group, where he led the development, economic analysis, and implementation of intercompany pricing strategies for multinational companies. Previously, Dr. Sciacca held senior transfer pricing positions at the Internal Revenue Service (IRS), Deloitte & Touche LLP, and Ernst & Young. In these positions, he led various critical APA projects, handled cost-sharing regulation and regulatory coordination projects, negotiated bilateral agreements with tax authorities worldwide, and developed numerous novel transfer pricing financial and valuation models, formulas, and tools. Earlier in his career, he was a Senior Economist at the Federal Trade Commission’s Bureau of Economics and was also a Senior Economist at a Washington, DC economics consultancy, where he served as an expert economist in more than 50 antitrust, commercial litigation, applied statistics, and econometrics projects. He also held faculty positions at Cornell University, Ithaca College, and Dickinson College.
PhD, Economics, Cornell University
MA, Economics, Cornell University
BA, Economics, Binghamton University
Selected tax dispute negotiation experience
- Designed and negotiated complex unilateral, bilateral, and multilateral agreements in more than 75 Advanced Pricing Agreements, Competent Authority and Appeals projects.
- Advised one of world's largest automotive original equipment manufacturers on economic analysis, regulatory requirements, and negotiation strategies for a four-country Advanced Pricing Agreement.
- Led economic and financial analysis in multimillion dollar tax dispute on behalf of one of the world’s largest biotechnology multinationals.
- Led seminal economic and financial analysis in extensive R&D cost-sharing project for a large medical products multinational.
- Led numerous comprehensive transfer pricing analyses involving intangibles and intellectual property valuation.
- Provided advisory services, supporting commodity chemicals clients' global intellectual property and manufacturing approach in meetings with the Internal Revenue Service.
Selected controversy, litigation support, and testimony experience
- Developed and prepared economic analysis in support of alleged monopolization liability and damages claim and intellectual property theft liability and damages counterclaims. General Electric Company v. R Squared Scan Systems, Inc., C-87-249-WS (M.D.N.C.).
- In anticipation of tax controversy and litigation, developed and presented detailed brand royalty valuation analysis for one of the of the world’s largest hotel multinationals.
- In anticipation of litigation, prepared economic analysis for world’s largest primary steel, aluminum and nickel producers.
- Prepared economic damages analysis regarding chemical manufacturing for leading plastics manufacturer. Conducted economic analysis and advised other major commodity and specialty chemical companies in contentious US-Canada and US-Germany tax examination disputes.
- Conducted economic analysis and prepared expert reports and testimony for anticipated Federal District Court proceedings on behalf of the US Federal Trade Commission in six antitrust merger cases involving industrial products, heavy construction equipment, pulp and paper, and pharmaceuticals.
- Provided rebuttal testimony before the Federal Energy Regulatory Commission on behalf of Union Carbide et al.
- Advised unsecured creditor committees on unidentified future capital expenditures relevant to valuation in two bankruptcy proceedings involving natural gas pipeline and electric generation and distribution services.
- Prepared econometric analysis and testified on benchmark cable television rates, filed by Intermedia Partners et al.
- Presented oral testimony before the US Office of Thrift Supervision on behalf of Bank of America re: a Community Reinvestment Act protest.
- Conducted econometric analysis and prepared testimony in support of downstate New York academic medical centers regarding proposed hospital peer group boundary definitions.