Caterpillar Financial Services Corp. v. Whitley

Benjamin Franklin is credited with the saying that in this world nothing is certain but death and taxes. However, we are convinced that he never had to consider the following: are royalties and interest paid to a domestic parent company by a foreign subsidiary under the domestic "water’s-edge” combined reporting method of apportioning income to be treated the same as dividends paid between similar entities under the "single-entity” apportionment method. We have.

After a careful review of the record and the relevant case law, and considering Dr. Franklin’s advice that "haste makes waste,” we…