United States Federal Circuit

In a tax refund action brought by a United Kingdom corporation for the tax years 1981-1987, a judgment finding that the company was entitled to a refund of over $65 million plus interest for the tax years at issue is affirmed where Treasury Regulation section 1.882-5 and the corporate yardstick, as applied to plaintiff's U.S. branch, violate Article 7 of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains.

Appellate Information

• Decided 01/15/2008
• Published 01/15/2008

Judges

• GAJARSA, Circuit Judge., Before LOURIE, SCHALL, and GAJARSA, Circuit Judges.

Court

• United States Federal Circuit

Counsel

• For Appellees:
  
• D. Scott Wise, Davis Polk & Wardwell, of New York, NY, argued for plaintiff-appellee.   With him on the brief were Mario J. Verdolini, Jr. and Leslie J. Altus.   Also on the brief were John L. Carr, Jr. and Michael C. Moetell, Winston & Strawn LLP, of Washington, DC., Judith S. Hagley, Attorney, Tax Division, Appellate Section, United States Department of Justice, of Washington, DC, argued for defendant-appellant.   With her on the brief were Eileen J. O'Connor, Assistant Attorney General, Richard T. Morrison, Deputy Assistant Attorney General, Gilbert S. Rothenberg, Jonathan S. Cohen, and Steven I. Frahm, Attorneys.   Also on the brief were Robert F. Hoyt, General Counsel, United States Department of the Treasury, of Washington, DC, and Donald L. Korb, Chief Counsel, United States Internal Revenue Service, of Washington, DC.