Riggs Nat'l Corp. & Subsidiaries v. Commissioner
United States Tax Court
P regularly made and participated in loans to borrowers located in foreign countries, including Brazil. It was one of hundreds of banks that were involved in the restructuring of Brazil's foreign debt.
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P regularly made and participated in loans to borrowers located in foreign countries, including Brazil. It was one of hundreds of banks that were involved in the restructuring of Brazil's foreign debt. As required by Brazilian law, various non-tax-immune Brazilian borrowers paid Brazilian withholding tax on their net loan interest remittances to P during 1980 through 1986. Although the Brazilian Supreme Court had held that, under Article 19 of the Brazilian Constitution, tax-immune Brazilian governmental entities, like the Central Bank, were not liable to pay withholding tax on their net loan…
1Opinion of the Court
Jacobs, Judge:
Respondent determined deficiencies in the Federal income tax of petitioner Riggs National Corp. & Subsidiaries, formerly known as Riggs National Bank & Subsidiaries.
The dispute involves petitioner’s entitlement to foreign tax credit under section 9011 for Brazilian taxes withheld on interest income petitioner received, during the years 1980 through 1986, as a result of its loans to Brazilian borrowers. The primary issues for decision are as follows: (1) Whether petitioner is legally liable for the Brazilian withholding tax purportedly paid by its Brazilian borrowers on their net…
2Cases cited15 opinions
- Banco Nacional De Cuba v. SabbatinoSupreme Court of the United States · 1964
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- W. S. Kirkpatrick & Co. v. Environmental Tectonics Corp., InternationalSupreme Court of the United States · 1990
- Biddle v. CommissionerSupreme Court of the United States · 1938
- American Chicle Co. v. United StatesSupreme Court of the United States · 1942
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3Cited by8 opinions
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- Barry M. Smith & Rochelle Smith v. CommissionerUnited States Tax Court · 2018
- PNC Financial Services Group, Inc. v. Commissioner of Internal Revenue ServiceCourt of Appeals for the D.C. Circuit · 2007
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