Supreme Court Unanimously Reverses Third Circuit, Says PPL Can Claim Foreign Tax Credit for U.K. Windfall Tax

The U.S. Supreme Court today unanimously reversed the Third Circuit (665 F. 3d 60) and agreed with the taxpayer that the United Kingdom's Windfall Tax is a tax on income and thus qualifies for the § 901 foreign tax credit.  PPL Corp. v. Commissioner, No. 12-43 (U.S. May 20, 2013).

• Fox News, Supreme Court Rules Utilities Can Claim U.S. Tax Credit on U.K. Windfall Tax
• Reuters, U.S. Justices Rule for PPL Corp in Overseas Tax Case
• Wall Street Journal, Supreme Court Rules Utilities Can Claim U.S. Tax Credit on U.K. Windfall Tax

Prior TaxProf Blog coverage:

• Jacob Goldin (Ph.D. Candidate (Economics), Princeton University), Reconsidering Substance Over Form in PPL, 137 Tax Notes 1229 (Dec. 17, 2012)
• Tax Prof Amicus Brief in PPL Corp. v. Commissioner (Jan. 27, 2013)
• Reuven S. Avi-Yonah (Michigan), Should the U.S. Dictate World Tax Policy? Reflections on PPL Corporation v. Commissioner (Feb. 6, 2013)
• Michael Knoll (Pennsylvania), Economic and Legal Arguments in PPL v. Commissioner (Feb. 15, 2013)
• Supreme Court Hears Oral Argument in PPL Corp. v. Commissioner (Feb. 21, 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)
• Jordan M. Barry (San Diego), Explanation of Issues in PPL v. Commissioner, ABA Preview of U.S. Supreme Court Cases, Vol. 40, Issue 5, pp. 201-04