SDI Netherlands B v. v. Commissioner
United States Tax Court
P was the licensee of a Bermuda corporation (SDI Bermuda) of worldwide rights to use computer software. P in turn licensed those rights for use in the United States to a U.S. corporation (SDI USA). P received royalties from SDI USA as well as from other licensees. P paid specified percentages of the royalties it received from its licensees to SDI Bermuda. P, SDI USA, and SDI Bermuda were members of a group of corporations under common control.
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P was the licensee of a Bermuda corporation (SDI Bermuda) of worldwide rights to use computer software. P in turn licensed those rights for use in the United States to a U.S. corporation (SDI USA). P received royalties from SDI USA as well as from other licensees. P paid specified percentages of the royalties it received from its licensees to SDI Bermuda. P, SDI USA, and SDI Bermuda were members of a group of corporations under common control. Held, the two licenses were separate and distinct from each other with the result that the royalties paid to P by SDI USA did not retain their U.S.…
1Opinion of the Court
SDI NETHERLANDS B.V., f.k.a. SDI INTERNATIONAL B.V., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
SDI Netherlands B.V. v. Commissioner
Docket No. 23747-94.
United States Tax Court
107 T.C. 161; 1996 U.S. Tax Ct. LEXIS 41; 107 T.C. No. 10;
October 2, 1996, Filed
Decision will be entered for petitioner.
P was the licensee of a Bermuda corporation (SDI Bermuda) of worldwide rights to use computer software. P in turn licensed those rights for use in the United States to a U.S. corporation (SDI USA). P received royalties from SDI USA as well as from other licensees. P paid specified…
2Cases cited26 opinions
- Pallottini v. CommissionerUnited States Tax Court · 1988
- Jarvis v. CommissionerUnited States Tax Court · 1982
- Achiro v. CommissionerUnited States Tax Court · 1981
- Estate of Emerson v. CommissionerUnited States Tax Court · 1977
- Borchers v. CommissionerUnited States Tax Court · 1990
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