LexisNexis® Legal Newsroom
The Even More Curious Case of Xilinx, Inc. v. Commissioner and the Future of Transfer Pricing

Editor's Note : The Ninth Circuit's revised opinion of March 22, 2010 agrees with the Tax Court's finding that the cost of employee stock options should not be included as a shared cost in a transaction governed by arm's length principles. Previously, the court's decision of May 27...

In re Bilski: Eligibility of Patent Protection for Business Methods Survives - For Now

Yesterday [June 28, 2010], the U.S. Supreme Court sidestepped a decision as to whether business methods are categorically excluded from patent protection, allowing the possibility of patent eligibility for business methods to survive for now. The majority focused its opinion on the narrow issue presented...

Bilski v. Kappos—Back Where We Started?

The Supreme Court of the United States issued a decision in In re Bilski affirming the Court of Appeals for the Federal Circuit's decision that Bilski's claims were not eligible for patenting under §101, but reversing the Federal Circuit's ruling that "machine or transformation"...

Supreme Court's Decision on the Patent Eligibility of Process Claims

Editor's Note : Bilski v. Kappos, 2010 U.S. LEXIS 5521 (U.S. June 28, 2010) changes the landscape on the patentability of business methods and has direct relevance to the viability of patenting for tax strategies. The impact of Bilski in this regard may not be entirely clear. However, in Bilski the...

River Garden Retirement Home v. Franchise Tax Bd., 2010 Cal. App. LEXIS 1146 (Cal. App. 1st Dist. July 15, 2010)

The California Franchise Tax Board's decision to recoup the Cal Rev & Tax Code § 24402 dividends received deduction against a taxpayer was proper where Board proceeded with proper authority to remedy Commerce Clause violation infecting Cal Rev & Tax Code § 24402 , and remedy of...

Bilski v. Kappos, 2010 U.S. LEXIS 5521 (U.S. June 28, 2010)

The Supreme Court, for the first time since the Federal Circuit's decision in State Street Bank & Trust Co. v. Signature Fin. Group Inc. , 149 F.3d 1368 (Fed. Cir. 1998) , addressed the proper standard for determining whether a claimed process is patentable subject matter under 35 U.S.C. §...

Canal Corp. v. Comm'r, 2010 U.S. Tax Ct. LEXIS 25 (T.C. Aug. 5, 2010)

The Service determined a $183,458,981 deficiency in the Chesapeake Corporation's Federal income tax, asserting that Chesapeake owed a $36,691,796 substantial understatement of income tax penalty under section 6662(a) for 1999. Chesapeake's subsidiary's contributed its assets and most of its...

CenturyTel, Inc. v. Dep’t of Revenue, 2010 Ore. Tax LEXIS 222 (Or. T.C. Aug. 9, 2010)

The taxpayer, domiciled outside of Oregon, and its subsidiaries were inthe wireline and wireless telecommunications business. When the taxpayer executed transactions related to the sale of stock, it was, for practical purposes, no longer engaged in wireless operations, and treated the gain on the stock...

PPL Corp. & Subsidiaries v. Comm'r, 2010 U.S. Tax Ct. LEXIS 31 (T.C. Sept. 9, 2010)

The IRS had declared a deficiency in 1997 federal income tax paid by PPL Corporation, the common parent of a group filing consolidated returns, denying its refund claim. At issue inter alia was the correctness of an IRS claim that a "windfall tax" paid by PPL's indirect United Kingdom subsidiary...

Container Corp. v. Comm’r: Clarity on Guarantee Fee Sourcing?

Editor's Note : The following is an excerpt from Rhoades & Langer U.S. International Taxation and Tax Treaties § 26.01[3][f] (Matthew Bender). ... The question of how to treat guarantee fees has long vexed both practitioners and the Internal Revenue Service. Those fees look like interest...

Accuracy-Related Penalties in a Disguised Sale Transaction - Canal Corp.

In Canal Corp. v Comm'r, 135 T.C. No. 9 (Aug 5, 2010) , Chesapeake (the former name of Canal Corp.) wanted to exit the tissue paper industry. For a variety of reasons, Chesapeake decided upon a leveraged partnership structure in which WISCO (Chesapeake's subsidiary), and then Georgia Pacific...

Podcast Analysis: The U.S. Tax Court decision in PPL Corporation & Subsidiaries v. Commissioner

On this edition, Elizabeth Sweigart and Lynn Loden discuss the distinctive aspects of the U.S. Tax Court's recent decision in PPL Corporation & Subsidiaries v. Commissioner and the holding's potential impact on uncertain tax position reporting preparation. Ms. Sweigart and Mr. Loden examine...

Podcast Analysis: The U.S. Tax Court decision in PPL Corporation & Subsidiaries v. Commissioner

On this edition, Elizabeth Sweigart and Lynn Loden discuss the distinctive aspects of the U.S. Tax Court's recent decision in PPL Corporation & Subsidiaries v. Commissioner and the holding's potential impact on uncertain tax position reporting preparation. Ms. Sweigart and Mr. Loden examine...