Compaq Computer Corp. v. Commissioner
United States Tax Court
H, a U.K. corporation, paid a dividend to P, its U.S. parent. Upon payment of the dividend, H, pursuant to the law of the United Kingdom, became liable for and paid advance corporation tax (ACT) and became entitled to a credit against its U.K. corporate tax. H allocated the U.K. credit to its two wholly owned subsidiaries, S1 and S2, which used the U.K. credit against their respective mainstream corporate tax liabilities.
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H, a U.K. corporation, paid a dividend to P, its U.S. parent. Upon payment of the dividend, H, pursuant to the law of the United Kingdom, became liable for and paid advance corporation tax (ACT) and became entitled to a credit against its U.K. corporate tax. H allocated the U.K. credit to its two wholly owned subsidiaries, S1 and S2, which used the U.K. credit against their respective mainstream corporate tax liabilities. Pursuant to I.R.C. sec. 901(a), P claimed a foreign tax credit for the ACT paid by H. HELD: Pursuant to Article 23(c)(1) of the U.S.- U.K. Convention, the payor of the ACT…
1Opinion of the Court
OPINION
Wells, Judge:
In the instant case, the parties filed cross-motions for summary judgment pursuant to Rule 121(a).1 The issue2 presented by the parties’ summary judgment motions is whether Compaq Computer Corp. (petitioner) is entitled to foreign tax credits pursuant to section 901(a) for certain U.K. advance corporation tax (ACT) payments.3
Summary judgment may be granted if the pleadings and other materials demonstrate that no genuine issue exists as to any material fact and that a decision may be rendered as a matter of law. See Rule 121(b); Sundstrand Corp. v. Commissioner, 98 T.C.…
2Cases cited11 opinions
- Sundstrand Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1992
- Sumitomo Shoji America, Inc. v. AvaglianoSupreme Court of the United States · 1982
- Helvering v. New York Trust Co.Supreme Court of the United States · 1934
- Biddle v. CommissionerSupreme Court of the United States · 1938
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3Cited by5 opinions
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- Topsnik v. Comm'rUnited States Tax Court · 2016
- 6611, Ltd., Ricardo Garcia, Tax Matters Partner v. CommissionerUnited States Tax Court · 2013
- Compaq Computer Corp. v. CommissionerUnited States Tax Court · 1999
- Compaq Computer Corporation and Subsidiaries v. CommissionerUnited States Tax Court · 1999