IRS triumphs in transfer pricing dispute

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

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:

contravenes transfer pricing rules

not litigation will solve transfer pricing wrangles

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