- 6 - not to be resolved in such proceedings. See Espinoza v. Commissioner, 78 T.C. 412, 415-416 (1982); Shiosaki v. Commissioner, 61 T.C. 861 (1974). The party moving for summary judgment has the burden of showing the absence of a genuine issue as to any material fact. See Shiosaki v. Commissioner, supra. The dispute here concerns a cross-border transfer of intangibles by a domestic parent to its foreign subsidiaries. Under the regulations in effect for the years under consideration, if a group of controlled entities participated in a “bona fide cost-sharing arrangement” as to the development of intangibles, then the district director is limited in his approach to reallocation. Sec. 1.482-2(d)(4), Income Tax Regs. In particular, the regulation provides that if there is a “bona fide cost-sharing arrangement”, then “the district director shall not make allocations with respect to such acquisition [of intangibles] except as may be appropriate to reflect each participant’s arm’s length share of the costs and risks of developing the property.” Id. The regulation goes on to direct that cost-sharing arrangements will be considered “arm’s length” where the “terms and conditions * * * [are] comparable to those which would have been adopted by unrelated parties similarly situated had they entered into such an arrangement.” Id. There is no disagreement about the bona fides of the cost-sharing agreements between thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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