Seminal Court Cases and Their Impact on Transfer Pricing ... - NABE
Seminal Court Cases and Their Impact on Transfer Pricing ... - NABE
Seminal Court Cases and Their Impact on Transfer Pricing ... - NABE
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Hospital Corp. of America (Tax <str<strong>on</strong>g>Court</str<strong>on</strong>g> 1983)<br />
<strong>Transfer</strong> of Business Opportunities<br />
• USP formed FSub to perform under c<strong>on</strong>tract with<br />
unc<strong>on</strong>trolled party<br />
• Most substantial work d<strong>on</strong>e by USP<br />
• IRS argued that all profits of FSub should be<br />
reallocated to USP<br />
• <str<strong>on</strong>g>Court</str<strong>on</strong>g> rejects argument that transfer of business<br />
opportunity required allocati<strong>on</strong> of all resulting profits<br />
• <str<strong>on</strong>g>Court</str<strong>on</strong>g> resorts to profit split to allocate 75% of FSub<br />
income back to USP<br />
6
Change language