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SUPPLEMENTAL MEMORANDUM FINDINGS OF FACT AND OPINION
JACOBS, Judge: This case is before us on remand from the
Court of Appeals for the District of Columbia Circuit. See Riggs
Natl. Corp. & Subs. v. Commissioner, 163 F.3d 1363 (D.C. Cir.
1999), revg. and remanding 107 T.C. 301 (1996).
The crux of the dispute involves petitioner’s entitlement to
foreign tax credits under section 9011 during years 1984 through
1986 for Brazilian income tax purportedly withheld and paid by
Banco Central do Brasil (the Central Bank) with respect to its
restructuring debt interest remittances to petitioner. The
specific issues for decision are: (1) Whether the Central Bank in
fact paid withholding taxes on petitioner’s behalf; and if so, (2)
whether the Brazilian withholding tax potentially creditable to
petitioner must be reduced by the amount of any subsidies that the
Central Bank may have received.
In Riggs Natl. Corp. & Subs. v. Commissioner, 107 T.C. at 360
(Riggs I), we concluded that petitioner was not “legally liable”
for purported Central Bank withholding tax payments, since we
determined that the Central Bank was not required, under Brazilian
law, to pay withholding tax on its restructuring debt interest
remittances to petitioner. We further determined that the
withholding tax purportedly paid by the Central Bank on its
1 All section references are to the Internal Revenue Code
for the years in issue.
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