- 9 -
For the purpose of petitioner's motion and respondent's
cross-motion, the parties agree that there are no genuine issues
of material fact in dispute and that the matter before us is ripe
for summary judgment. Rule 121(b); Exxon Corp. v. Commissioner,
102 T.C. 721, 725 (1994); Intel Corp. & Consol. Subs. v.
Commissioner, 100 T.C. 616, 619 (1993), affd. 67 F.3d 1445 (9th
Cir. 1995). If we grant petitioner's motion, further proceedings
to determine the amounts of additional FSC commission expenses to
which petitioner is entitled will be required. If, on the other
hand, we grant respondent's cross-motion, no further proceedings
concerning this issue will be necessary.
In deciding the matter before us, we first find it useful to
synopsize the statutory and regulatory framework and history
pertaining to FSC's and their statutory predecessors, domestic
international sales corporations (DISC's).
Congress enacted the DISC provisions in 1971 as a tax
incentive to encourage and increase exports. Revenue Act of
1971, Pub. L. 92-178, sec. 501, 85 Stat. 497, 535. The DISC
provisions are set forth in sections 991 through 997. Those
sections allowed domestic corporations to defer taxes on a
significant portion of profits from export sales similar to the
tax benefits available to corporations manufacturing abroad
through foreign subsidiaries. H. Rept. 92-533, at 58-59 (1971),
1972-1 C.B. 498, 529; S. Rept. 92-437, at 90-91 (1971), 1972-1
C.B. 559, 609. A domestic corporation that conducts its foreign
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011