Legal Briefs

Bank of N.Y. Mellon Corp. v. Commissioner of Internal Revenue

By Scott P. Martin, Kathryn Comerford Todd, Warren Postman, & Ilya Shapiro
December 3, 2015

Last month, Cato filed a brief in AIG v. United States that asked the Supreme Court to resolve a split among he federal appellate circuit courts regarding the IRS’s application of the “economic substance doctrine” to deny credits against U.S. taxes for foreign taxes paid in certain kinds of transactions. (For background, see here.) Now we’ve again joined the U.S. Chamber of Commerce on a brief supporting a virtually identical challenge involving the Bank of New York. Along with an earlier case involving Salem Financial, Inc., there are three cert petitions pending that raise these same issues of double-taxation, business uncertainty, and punitive IRS interpretations of standard tax-accounting practices. The Supreme Court ought to take up one or all of them.

Read the Full Legal Brief