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19 August 2018

U.S. International Tax This Week for the Week Ending August 17

Ernst & Young's U.S. International Tax This Week newsletter for the week ending August 17 is now available. Prepared by Ernst & Young's International Tax Services group, this weekly update summarizes important news, cases, and other developments in international taxation.

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Spotlight

This week's developments include two cases as follows:

In Trusted Media Brands, Inc. v. USA, No. 17-3733-cv (2d Cir. 10 August 2018), the US Court of Appeals for the Second Circuit affirmed a District Court decision holding that the 10-year statute of limitations period for refunds related to foreign taxes under Section 6511(d)(3) only applies when foreign taxes are claimed as a credit, and not when foreign taxes are claimed as a deduction. Accordingly, the taxpayer's refund claim attributable to net operating losses (NOLs) that came about as a result of deducting rather than crediting foreign taxes was not timely as it was outside the general three-year limitations period for claiming a refund attributable to the carryback of NOLs under Section 6511(d)(2).

In Medtronic, Inc. v. Comm'r, 8th Cir., No. 17-01866 (16 August), the US Court of Appeals for the Eighth Circuit vacated a Tax Court's 25 January 2017 order and remanded the case for further consideration. At issue will be whether the transfer pricing method was a reliable method and was applied correctly when calculating the arm's-length royalty rates for certain intercompany licenses.

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Recent Tax Alerts

Asia

Canada & Latin America

Europe

Middle East

Oceania

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IRS Weekly Wrap-Up

Internal Revenue Bulletin

 2018-34Internal Revenue Bulletin of August 20, 2018

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Additional Resources

Ernst & Young Client Portal, the leading source for news, analysis, and reference materials for corporate tax professionals, has a variety of content of interest to international tax practitioners, including:

— International Tax Online Reference Service. Key information about, and important tax developments from, 56 foreign jurisdictions, including information on tax rates, interest rates and penalties, withholding, and filing dates.

— EY/Passport. EY/Passport is your guide to planning ventures in the global economy, offering a wealth of tax and business knowledge on more than 150 countries.

Because the matters covered herein are complicated, U.S. International Tax This Week should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.

Document ID: 2018-1651

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

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