Corporate Taxpayers and Frivolous Arguments, Part 1

Authors

Reuven S. Avi-Yonah, University of Michigan Law SchoolFollow

Document Type

Article

Publication Date

2024

Abstract

In two recent cases, corporate taxpayers have made legal arguments that seem on their face to be frivolous.

The first example, as Robert Goulder explains in his excellent recent column, is the argument made by Liberty Global (LGI) involving the source of the gain on the sale of a foreign subsidiary. LGI sold the shares of a Japanese subsidiary for a gain of $3.25 billion, of which $438 million was dividend income under section 1248. The issue was the source of the remaining $2.8 billion gain. LGI argued that it should be foreign source despite the explicit source rule for capital gains in section 865.

Comments

Reprinted with the permission of Tax Analysts.

Recommended Citation

Avi-Yonah, Reuven S. "Corporate Taxpayers and Frivolous Arguments, Part 1." Tax Notes International 114, no. 4 (2024): 555-558.