FORWARD GC

Share this post
💵 The Supreme Court said no; now tech companies are saying oh no
newsletter.lawtrades.com

💵 The Supreme Court said no; now tech companies are saying oh no

Raad Ahmed
Jun 24, 2020
Share this post
💵 The Supreme Court said no; now tech companies are saying oh no
newsletter.lawtrades.com

By denying cert to a case involving the IRS, the Supreme Court will cost tech companies billions of dollars.

This is all about foreign subsidiaries: Major technology companies with foreign subsidiaries like to move their costs of doing business to the United States and away from other countries. The result is higher deductions and less taxed income in the U.S., coupled with more income reported in foreign countries, where tax rates are lower.

The appeals court had earlier ruled in favor of the IRS: But the trial court had sided with the plaintiff, Atria, which was later bought by Intel. So tech companies had hoped for a reversal, and some had been waiting to pay the IRS thinking they’d have a smaller bill.

We’re talking big companies and big bucks: Facebook, Alphabet, Twitter and Intel, a party in the suit, are among those that stand to lose billions of dollars combined because of the result. 

The Verdict

This is likely to be a one-time gut punch for the companies. In fact, it’s the IRS that will likely need to make longer term adjustments. Legal experts believe this case will make the agency more open to review by courts in the future.

Comment
Share
Share this post
💵 The Supreme Court said no; now tech companies are saying oh no
newsletter.lawtrades.com

Create your profile

0 subscriptions will be displayed on your profile (edit)

Skip for now

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.

TopNewCommunity

No posts

Ready for more?

© 2022 Lawtrades
Privacy ∙ Terms ∙ Collection notice
Publish on Substack Get the app
Substack is the home for great writing