United States Sixth Circuit

Tax Court erred in its conclusion that taxpayer-controlled foreign corporations' purchase of certificates of deposit from taxpayer's subsidiary credit card company was not a "deposit" with "persons carrying on the banking business" under Internal Revenue Code section 956; company issuing credit cards to taxpayer was "carrying on the banking business" under that statute, and finding of an implied related-party prohibition in section 956 was error.

Appellate Information

• Decided 04/11/2002
• Published 04/11/2002

Judges

• Before: JONES,DAUGHTREY, and COLE, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellant:
  
• Joel V. Williamson (briefed), Roger J. Jones (argued and briefed), Russell R. Young (briefed), Mayer, Brown & Platt, Chicago, IL, James P. Fuller (briefed), Jennifer L. Fuller (briefed), Kenneth B. Clark (briefed), William F. Colgin (briefed), Fenwick & West, Palo Alto, CA, for Petitioner-Appellant., Stephen D. Gardner (briefed), Kronish, Lieb, Weiner & Hellman, New York, NY, for Amicus Curiae.


• For Appellees:
  
• Stuart L. Brown, Internal Revenue Service, Office of Chief Counsel, Washington, DC, Teresa E. McLaughlin (argued and briefed), Donald B. Tobin (briefed), U.S. Department of Justice, Appellate Section Tax Division, Washington, DC, for Respondent-Appellee.