T.C. Memo. 2000-388 UNITED STATES TAX COURT SEAGATE TECHNOLOGY, INC., SUCCESSOR IN INTEREST TO SEAGATE PERIPHERALS, INC., f.k.a. CONNER PERIPHERALS, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 15086-98. Filed December 22, 2000. P, a domestic corporation, entered into a cost- sharing agreement with its foreign subsidiaries in connection with certain intangibles that were transferred to the subsidiaries. R determined that P should have included in the cost-sharing pool the cost of stock options for P’s employees who performed the research and development regarding the intangibles. Where there is a bona fide cost-sharing arrangement, R may make allocations only “to reflect each participant’s arm’s-length share of the cost of the risks of developing the property.” Sec. 1.482-2(d)(4), Income Tax Regs. P contends that R is limited to making allocations only where R is aware of actual arm’s-length circumstances where the cost of stock options is shared. P also contends that for purposes of summary judgment, R’s reliance on an expert’s opinion is not a “fact” for purposes of deciding whether the parties have a genuine dispute about a material fact.Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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