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Full-Text Articles in Law
Are Digital Services Taxes Imposed By Other Countries Creditable Under Irc Section 903? Yes. But, What If The Opposite Is True?, Charles Edward Andrew Lincoln Iv
Are Digital Services Taxes Imposed By Other Countries Creditable Under Irc Section 903? Yes. But, What If The Opposite Is True?, Charles Edward Andrew Lincoln Iv
Student Scholarship
This article is divided in the following parts. Part II will discuss and define what Section 903 stands for from a legislative, regulatory, and case perspective. Part III will discuss what digital services taxes are. Part III will define “nexus” and how the concept of “nexus” will relate to Section 903. Part IV concludes by suggesting that digital services taxes do not fall into the traditional statutory paradigm. Ultimately, Section 903 hypothecates that a tax will either be a traditional income tax creditable under Section 901 or tax in the place of that tax. If it does not fall into …
Tax Court Find Stars Transaction Lacks Economic Substance, Robert D. Probasco, Lee S. Meyercord
Tax Court Find Stars Transaction Lacks Economic Substance, Robert D. Probasco, Lee S. Meyercord
Faculty Scholarship
In Bank of New York Mellon Corp. v. Commissioner, the Tax Court found that a structured trust advantaged repackaged securities (“STARS”) transaction entered into by BNY Mellon lacked economic substance, and disallowed foreign tax credits of $199 million as well as transactional expenses of $8 million. BNY Mellon is the first test case to emerge from the IRS’s attempts to disallow tax benefits to several financial institutions that participated in the STARS transaction.
The STARS transaction is one of a number of different transactions that the IRS refers to as “foreign tax credit generators.” These transactions generally rely on inconsistent …