Nissho Iwai Am. Corp. v. Commissioner
United States Tax Court
P, an American subsidiary of a Japanese corporation, makes loans in the United States and in foreign countries as part of its business operations. On Feb. 17, 1978, P lent $ 20 million to N, a Brazilian corporation. The loan between P and N was a net loan, in which N agreed to make interest payments to P free and clear of the withholding tax which Brazil imposed on payments of interest made by Brazilian borrowers to foreign lenders.
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P, an American subsidiary of a Japanese corporation, makes loans in the United States and in foreign countries as part of its business operations. On Feb. 17, 1978, P lent $ 20 million to N, a Brazilian corporation. The loan between P and N was a net loan, in which N agreed to make interest payments to P free and clear of the withholding tax which Brazil imposed on payments of interest made by Brazilian borrowers to foreign lenders. During the years in issue, N received a Government subsidy based upon the amount of withholding tax imposed on P. Held: 1. For purposes of sec. 901, I.R.C. 1954,…
1Opinion of the Court
JACOBS, Judge:
Respondent determined the following deficiencies in petitioner’s Federal income taxes:
FYB Mar. 31— Amount of Deficiency2
' 1980 . $183,457
1981 . 439,808
Respondent twice increased the deficiency amount in two amended answers to the petition filed herein. The total deficiency now claimed is $438,180 for the fiscal year ended March 31, 1980, and $466,531 for the fiscal year ended March 31, 1981.
Petitioner filed an amendment to its petition, claiming an overpayment of $1,850,956 for the fiscal year ended March 31, 1980.
This case concerns the amount of foreign tax credit, if any,…
2Cases cited13 opinions
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