Veritas Software Corp. v. Commissioner (US case 133 TC 14): The U.S. Tax Court has held that the IRS’s $1.675bn adjustment to a cost sharing buy-in payment received by Veritas Software Corp. from an Irish affiliate was “arbitrary, capricious, and unreasonable”.
The tax court also confirmed that Veritas’ use of the comparable uncontrolled transactions method (albeit with some adjustments imposed by the court) was the best way to calculate transfer pricing on the buy-in payment.
India, 16 October 2009: consideration paid by telecasting companies to satellite companies was for the use of a “process” and so was a royalty under Indian tax law even though the process was not “secret.”
The BBC has reported that a court has approved the service of an order via Twitter. Watch for more Blaney’s Blarney Orders … (great name).
New South Wales’ Duties Act treats goodwill (including certain IP rights) as subject to stamp duty in New South Wales if it relates to a business with NSW customers; this was reviewed in Gloria Jean’s Coffees International Pty Ltd v Chief Commissioner of State Revenue [2008] NSWSC 1327.
In RM Education plc v HM Revenue & Customs [2009] UKVAT V20911 (decision published 9 January 2009), the VAT Tribunal confirmed that exam marking software & associated services do not qualify for the VAT exemption for education.