Amazon.com, Inc. v. Commissioner (II)

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Full Text of Court Cases
August 16, 2019
5961 Catalog and Mail-Order Houses
454110 Electronic Shopping and Mail-Order Houses
federal taxation
transfer pricing, beta, discount rate, expert testimony, discounted cash flow (DCF), deficiency, identifiable intangibles, arm's length, income tax, comparable uncontrolled transaction, buy-in agreements

Amazon.com, Inc. v. Commissioner (II)
2019 U.S. App. LEXIS 24453; __ F.3d __; 2019 WL 3850580
US
Federal Court
9th Circuit
United States Court of Appeals
Robert Reilly, John Willis (petitioner [Amazon], valuation); Daniel Frisch, David Haigh, Harlow Higinbotham (respondent [IRS], valuation)
Callahan

Summary

Appeals court affirms Tax Court ruling favoring taxpayer’s CUT method over IRS’ DCF to value various intangible assets transferred to European subsidiary; governing regulations limit definition of “intangible” to independently transferrable assets, excluding residual business assets, court says.
Amazon.com, Inc. v. Commissioner
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See Also

9th Circuit Upholds Tax Court’s Valuation of Intangibles in Big Transfer Pricing Case

Appeals court affirms Tax Court ruling favoring taxpayer’s CUT method over IRS’ DCF to value various intangible assets transferred to European subsidiary; governing regulations limit definition of “intangible” to independently transferrable assets, excluding residual business assets, court says.