Guardian Industries Corp. v. Commissioner
United States Tax Court
I.R.C. section 162(f) denies a deduction for "any fine or similar penalty paid to a government for the violation of any law." Section 1.162-21(a), Income Tax Regs., provides that the term "government" includes a "corporation or other entity serving as an agency or instrumentality" of a domestic or foreign government.
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I.R.C. section 162(f) denies a deduction for "any fine or similar penalty paid to a government for the violation of any law." Section 1.162-21(a), Income Tax Regs., provides that the term "government" includes a "corporation or other entity serving as an agency or instrumentality" of a domestic or foreign government. In 2008 P, a U.S. corporation, paid a fine to the Commission of the European Community (Commission) for participating in a pricefixing cartel that violated the competition provisions of European Community (EC) law. P subsequently claimed a deduction for this payment on its 2008…
1Opinion of the Court
OPINION
Lauber, Judge:
Following an examination of petitioner’s Federal income tax returns for 2005-08, the Internal Revenue Service (IRS or respondent) determined tax deficiencies and accuracy-related penalties under section 6662(a). After concessions, the remaining substantive issue concerns the deductibility of a €20 million payment that petitioner made in 2008 to the Commission of the European Community (Commission). The IRS disallowed a deduction for this payment under section 162(f), which provides that “[n]o deduction shall be allowed * * * for any fine or similar penalty paid to a…
2Cases cited54 opinions
- Robinson v. Shell Oil Co.Supreme Court of the United States · 1997
- Duncan v. WalkerSupreme Court of the United States · 2001
- Bowen v. Georgetown University HospitalSupreme Court of the United States · 1988
- Bowles v. Seminole Rock & Sand Co.Supreme Court of the United States · 1945
- K Mart Corp. v. Cartier, Inc.Supreme Court of the United States · 1988
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