United States Ninth Circuit
Xilinx, Inc. v. Comm'r. of Int'l. Rev., 06-74246
In a tax court petition challenging the IRS's determination that, under the tax regulations in effect during tax years 1997, 1998 and 1999, related companies engaged in a joint venture to develop intangible property must include the value of certain stock option compensation one participant gives to its employees in the pool of costs to be shared under a cost sharing agreement, even when companies operating at arm's length would not do so, the grant of the petition is affirmed where related companies were not required to share such costs and the Commissioner of Internal Revenue's attempt to allocate such costs was arbitrary and capricious.
Appellate Information
- Argued 03/12/2008
- Decided 03/22/2010
- Published 03/22/2010
Judges
- Before: STEPHEN REINHARDT, JOHN T. NOONAN, JR. and RAYMOND C. FISHER, Circuit Judges.
Court
- United States Ninth Circuit
Counsel
- For Appellant:
- Alice E. Loughran, Steptoe & Johnson LLP, Washington, D.C., for amici curiae Cisco Systems, Inc., and Altera Corporation., A. Duane Webber, Baker & McKenzie LLP, Washington, D.C., for amici curiae Software Finance and Tax Executives Council and AeA.
- For Appellees:
- Ronald B. Schrotenboer, Kenneth B. Clark (argued) and Tyler A. Baker, Fenwick & West LLP, Mountain View, CA, for the petitioner-appellee., Gilbert S. Rothenberg, Richard Farber and Arthur T. Catterall (argued), Tax Division, Department of Justice, Washington, D.C., for the respondent-appellant.