Sullivan
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Douglas Stransky was quoted in the article, "Liberty Global Seeks Foreign Tax Credit in Second IRS Showdown," published by Bloomberg Tax [sub. req'd] on March 14, 2025. The article focuses on Liberty Global Inc. which is appealing a federal court decision regarding the IRS's denial of a $240 million foreign tax credit related to its $3.25 billion stock sale. The company argues that treating part of the income as foreign-source would prevent double taxation by both the US and Japan.

Doug noted that if the Tenth Circuit agrees with Liberty Global's interpretation, it could allow other multinationals to claim foreign tax credits that were previously unavailable.

“There could be situations that occur for US-based multinationals with similar facts as Liberty Global, such as with respect to the sale of CFCs, that would allow those companies to take foreign tax credits now where under the Tax Court’s interpretation of the law they could not take such credits,” he said.

Doug also emphasized the importance of understanding the foreign tax credit position for US-based multinationals to avoid potential double taxation in future transactions. “Of course, knowing in advance the FTC position will be helpful to those US-based multinationals in structuring an M&A deal so that, possibly, they can avoid double taxation,” he said.