Brown Group, Inc. And Its Subsidiaries v. Commissioner of Internal Revenue

GARTH, Senior Circuit Judge.

This is an appeal from the en banc decision by the United States Tax Court (the “Tax Court”), assessing taxes against appellant, the Brown Group, Inc. (“the Brown Group”) and its subsidiaries, on the commission distributions received by the Brown Group’s wholly-owned Cayman Islands subsidiary, Brown Cayman, Ltd. (“BCL”), under Subpart F of the Internal Revenue Code (codified at 26 U.S.C. § 951 et seq.).

The issue we address on appeal is whether BCL’s distributive share of a foreign partnership’s earnings (Brinco partnership) should be taxed to the Brown Group under…