Starr International Company v. United States

Edwards, Senior Circuit Judge:

Dividends paid by U.S. corporations and received by foreign shareholders are generally subject to a 30 percent withholding tax. See 26 U.S.C. §§ 881 (a)(1), 1442(a). Bilateral tax treaties between the United States and other nations reduce this tax rate to encourage cross-border investments and allow taxpayers to avoid double taxation. This case concerns an attempt by Swiss-domiciled Starr International Company, Inc. ("Starr") to avail itself of a bilateral tax treaty between the United States and Switzerland to reduce its tax rate on U.S.-source dividend income.…