- 24 -
721 (1994). The most basic tenet of statutory construction is to
begin with the language of the statute itself. United States v.
Ron Pair Enters., Inc., 489 U.S. 235, 241 (1989). When the plain
language of the statute is clear and unambiguous, that is where
the inquiry should end. Id. Where a statute is silent or
ambiguous, we look to legislative history to ascertain
congressional intent. Peterson Marital Trust v. Commissioner,
102 T.C. 790, 799 (1994), affd. 78 F.3d 795 (2d Cir. 1996). We
apply these rules to interpret the regulations promulgated under
section 994.
An integral part of calculating CTI is determining the costs
of the export sales. Sec. 1.994-1(c)(6), Income Tax Regs. The
regulations under section 994 require taxpayers to account for
the "total costs" related to export sales. Sec. 1.994-1(c)(6),
Income Tax Regs.; see sec. 1.925(a)-1T(c)(6)(ii), Temporary
Income Tax Regs., 52 Fed. Reg. 6446 (Mar. 3, 1987). Total costs
include costs that definitely relate to the export sales and a
ratable share of costs that do not definitely relate to any class
of gross income. Sec. 1.994-1(c)(6)(iii), Income Tax Regs.; see
sec. 1.925(a)-1T(c)(6)(iii)(D), Temporary Income Tax Regs.,
supra. Thus, taxpayers must allocate their costs between export
sales and domestic sales to compute CTI. Sec. 1.994-
1(c)(6)(iii), Income Tax Regs.; see sec. 1.925(a)-
1T(c)(6)(iii)(D), Temporary Income Tax Regs., supra.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011