- 4 -
prior to 1995.2 Petitioner asserts the regular rate of interest
should continue to apply to the previously accrued interest after
January 1, 1995.
As computed by petitioner, the overpayment interest that
should have been paid to petitioner is $65,288,523.47, which is
$4,375,689.66 greater than the $60,912,833.81 computed by
respondent as the interest payable.
Respondent’s position, which was successfully asserted in
Gen. Elec. Co. v. United States, 384 F.3d 1307 (Fed. Cir. 2004),
affg. in part and remanding in part 56 Fed. Cl. 488 (2003), is
that the lower GATT rate should be applied as of January 1, 1995,
in calculating the compound interest on any previously accrued
interest attributable to that portion of an overpayment in excess
of $10,000. Such interest would have been compounded at the
regular corporate overpayment rate up to that date.
Petitioner timely filed a motion pursuant to section 7481(c)
and Rule 261 for a redetermination of the interest owed to it on
2The GATT amendment was enacted by the Uruguay Round
Agreements Act, Pub. L. 103-465, sec. 713, 108 Stat. 4809, 5001
(1994). The amendment was adopted as a revenue raiser in
connection with the General Agreement on Tariffs and Trade
(GATT). Interest computed pursuant to the amendment is generally
referred to as GATT interest and the revised interest rate as the
GATT rate.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011