- 27 -
Year Credit
1984 $166,415
1985 181,272
1986 528,365
Following the Court of Appeals’ remand of this case, we
instructed the parties to file written reports advising how we
should implement the Court of Appeals’ mandate. The parties then
submitted to the Court their agreed proposal regarding the
procedures to be used in implementing the mandate. In accordance
with the parties’ agreement, we issued an order on May 12, 1999,
directing that the record in this case would not be reopened to
allow either party to introduce additional factual information,
documents, or testimony.
OPINION
Section 901 allows a domestic corporation to claim the amount
of any income taxes paid or accrued during the taxable year to a
foreign country as a credit against its Federal income tax (subject
to certain limitations not applicable herein). See sec. 901(b)(1).
The purpose of the credit is to reduce international double
taxation. See American Chicle Co. v. United States, 316 U.S. 450,
452 (1942). In general, the person by whom foreign income tax is
considered paid is the person upon whom foreign law imposes legal
liability for the tax, even if another person (e.g., a withholding
agent) remits the tax. See sec. 1.901-2(f)(1), Income Tax Regs.
Foreign income tax generally may be considered paid by a taxpayer
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011