- 3 - Without detailing the relationships of the various entities that respondent contends exist, we note that respondent determined generally that certain U.S. entities related to Ladney are dependent agents of petitioner which, within the context of section 864(c)(5),1 negotiated contracts on behalf of petitioner. On that premise, respondent determined that petitioner’s income is from sources outside the United States which are effectively connected with petitioner’s U.S. trade or business. Apparently, petitioner does not deny that it had a U.S. trade or business but disputes that its income from sources outside the United States is effectively connected with its U.S. trade or business. Respondent seeks copies of deposition transcripts taken in connection with litigation in the U.S. District Court for the Middle District of Florida. Petitioner was a defendant in litigation styled Cinpres Ltd. v. Hendry, Case No. 96-752-CIV-T- 24B (M.D. Fla., Dec. 12, 1998) (Cinpres case). That case involved a patent infringement action brought by Cinpres, a British company, against petitioner and a competitor of petitioner. Petitioner, a foreign corporation, questioned the U.S. District Court’s jurisdiction over it, and depositions were taken, in part, to discern the relationship between petitioner 1 Section references are to the Internal Revenue Code, and Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011