Branch Profits Tax and Branch Level Interest Tax

Branch Profits Tax and Branch-Level Interest Tax

Treaty Provisions

Canada-U.S. Treaty, Article X, Paragraph 6 (Branch Profits Tax)

Court Decisions

National Westminster Bank, PLC v. United States, No. 95-758T (Fed. Cl., November 14, 2003) (Court of Federal Claims granted taxpayer's motion for partial summary judgment holding that U.S.-U.K. treaty does not allow U.S. to allocate additional capital to branch of foreign bank)

National Westminster Bank, PLC v. United States, 44 Fed. Cl. 120 (1999), interlocutory appeal denied, 232 F.3d 906 (Fed. Cir. 2000) (Treas. Reg. 1.882-5 inconsistent with art. 7(2) of U.S.-U.K. treaty)

Taiyo Hawaii Co., Ltd. v. Commissioner, 108 T.C. No. 27 (June 25, 1997)

Other Materials

PLR 200428016 (Multiple back-to-back stock transfers among controlled group of foreign and domestic entities not treated as stock disposition for purposes of determining dividend equivalent amount under branch profits tax regime)

PLR 9831024 (Corporation qualifies as foreign country resident)

Relevant IRS Forms

Form 8848 Consent to Extend the Time To Assess the Branch Profits Tax Under Regulations Sections 1.884-2(a) and (c) (Rev. June 2002)

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