Qantas Airways Limited v. United States

ARCHER, Chief Judge.

The United States appeals the judgment of the Court of Federal Claims awarding Qantas Airways Ltd. a refund of income taxes paid on certain rental and capital gains income received in the tax years ending March 31, 1983, 1984, and 1985. Qantas Airways Ltd. v. United States, 30 Fed.Cl. 851 (1994). We reverse and remand.

BACKGROUND

Qantas is an Australian corporation that operates an international airline with scheduled flights throughout the world, including the United States. Qantas was wholly owned and actively controlled by the Australian government during the tax years at…