IRS triumphs in transfer pricing dispute
Silicon Valley chip manufacturer loses in court against US taxman
Xilinx has lost a court ruling in a transfer pricing dispute against the
Internal Revenue Service (IRS).
The US Court of Appeals reversed an earlier Tax Court hearing from 2005
involving the companies Irish subsidiary, Xilinx Ireland, and the allocation of
research and development costs, according to
webcpa.com
At the time, the court had agreed with Xilinx, but the IRS has now
successfully appealed the ruling in a 2-1 decision.
The multinational does not expect the ruling to have any material impact on
its future earnings. It is unclear how much money Xilinx is now liable to pay
the IRS.
Further Reading:
Dixons
contravenes transfer pricing rules
Arbitration
not litigation will solve transfer pricing wrangles