Liberty Global has announced that it will challenge the November 2023 Tax Court finding that the company had incorrectly boosted its foreign tax credits by failing to account for gains that exceeded the total foreign loss on the sale of its stake in another company.
The Tax Court rejected the company's argument that Treasury Regulation Section 1.904(f)-2(d)(1) should apply to classify the sale gain as foreign-source income, asserting that the statute was clear and that the regulation solely pertains to the gain necessary to recapture the overall foreign loss balance.
This decision will mark Liberty Global's second court appeal in recent months, following its December 2023 decision to appeal its economic substance doctrine district court loss to the Tenth Circuit.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
