globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload |
17 August 2018 Report on recent US international tax developments – 17 August 2018 In Trusted Media Brands, Inc. v. USA, No. 17-3733-cv (2d Cir. 10 August 2018), the United States (US) Court of Appeals for the Second Circuit (Second Circuit Court of Appeals) affirmed a district court decision holding that the 10-year statute of limitations period for refunds related to foreign taxes under Internal Revenue Code1 Section 6511(d)(3) only applies when foreign taxes are claimed as a credit, and not when foreign taxes are claimed as a deduction. Accordingly, the taxpayer's refund claim attributable to net operating losses (NOLs) that came about as a result of deducting rather than crediting foreign taxes was not timely as it was outside the general three-year limitations period for claiming a refund attributable to the carryback of NOLs under Section 6511(d)(2). In Medtronic, Inc. v. Comm'r, 8th Cir., No. 17-01866 (16 August 2018), the US Court of Appeals for the Eighth Circuit vacated a Tax Court's 25 January 2017 order and remanded the case for further consideration. At issue will be whether the transfer pricing method was a reliable method and was applied correctly when calculating the arm's-length royalty rates for certain intercompany licenses. 1. All "Section" references are to the Internal Revenue Code of 1986, and the regulations promulgated thereunder. Document ID: 2018-5993 |
