Friday, March 22, 2013
Patrick J. Smith (Ivins, Phillips & Barker, Washington, D.C.), PPL: How to Determine Whether a Foreign Tax is Creditable, 138 Tax Notes 1351 (Mar. 18, 2013):
PPL Corp. v. Commissioner presents the question whether the creditability of a foreign tax must be determined by applying the requirements of the § 901 regulations to the foreign statute’s formula for the tax or by applying those requirements to an algebraically equivalent reformulation of the statutory formula. The decision will likely turn on whether the Supreme Court agrees with PPL that tax law’s general substance-over-form principle authorizes reliance on an algebraic reformulation to determine whether a foreign tax is creditable for U.S. tax purposes.
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