- 2 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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