Unionbancal Corporation - Page 1
















                                   113 T.C. No. 22                                    


                               UNITED STATES TAX COURT                                


          UNIONBANCAL CORPORATION, F.K.A. UNION BANK, SUCCESSOR IN INTEREST           
          TO STANDARD CHARTERED HOLDINGS, INC. AND INCLUDABLE SUBSIDIARIES,           
             Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent               


               Docket No. 11364-97.               Filed October 22, 1999.             


                    In 1984, P was part of a controlled group of                      
               corporations.  On its 1984 Federal income tax return, P                
               reported an $11.6 million loss resulting from P’s sale                 
               of a loan portfolio to its United Kingdom parent                       
               corporation, SC-UK.  United States and United Kingdom                  
               competent authorities subsequently determined that the                 
               actual loss was $87.9 million.  Pursuant to a                          
               settlement agreement for the 1984 taxable year, R                      
               allowed P to deduct $2.3 million of the loss on its                    
               1984 return.  The remaining loss was deferred pursuant                 
               to sec. 267(f), I.R.C.  R determined that under sec.                   
               1.267(f)-1T(c)(6), Temporary Income Tax Regs., 49 Fed.                 
               Reg. 46998 (Nov. 30, 1984), P was not entitled to                      
               deduct the deferred loss in 1988 when it left the                      
               controlled group before the loan portfolio had been                    
               disposed of outside the controlled group.  Instead, R                  
               determined that under sec. 1.267(f)-1T(c)(7), Temporary                
               Income Tax Regs., supra, SC-UK’s basis in the loan                     





Page:   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