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licensed in the future, without any deductions therefrom except
rebates, or, sales or value added taxes."
Petitioner received royalty payments pursuant to the U.S.
license agreement from SDI USA, during the years in issue, in the
following amounts:
1987 $2,663,401
1988 2,936,889
1989 3,092,710
1990 2,139,458
Respondent mailed notices of deficiency to petitioner, one
for 1987, 1988, and 1989, and one for 1990, on July 29, 1994.
The parties have stipulated the amounts of royalties
received by petitioner from SDI USA and paid by petitioner to SDI
Bermuda. As a consequence, it appears that these amounts, if
subject to withholding tax, would produce deficiencies greater
than those determined in the notices of deficiency for 1987,
1988, and 1990 and a lesser amount for 1989. Respondent has made
no specific request for any increased deficiencies.
Discussion
Increased Deficiencies
Section 6214(a) provides that this Court has jurisdiction to
determine an increased deficiency "if claim therefor is asserted
* * * at or before the hearing or a rehearing". Under the
circumstances herein, where the amounts upon which the
mathematical calculation of the withholding tax is based have
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