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
COMPAQ COMPUTER CORPORATION AND SUBSIDIARIES, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Compaq Computer Corp. v. Commissioner
No. 24238-96
United States Tax Court
113 T.C. 363; 1999 U.S. Tax Ct. LEXIS 52; 113 T.C. No. 25;
November 18, 1999, Filed
An appropriate order will be issued.
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
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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