Co-authored by Mr Robert L. Bronston & Mr Andrew H. Schapiro
The Supreme Court granted certiorari in one case of potential interest to the business community. Amicus briefs in support of the petitioner are due on Friday, July 12, 2002, and amicus briefs in support of the respondent are due on Monday, August 12, 2002.
Taxation - Export Subsidiaries - Allocation of Research and Development Costs.
The Supreme Court granted certiorari in Boeing Co. v. United States, No. 01-1209, to resolve a split among the circuits regarding the proper allocation of research and development costs between foreign and domestic income when computing taxable income for export subsidiaries.
In order to encourage export sales, since the mid-1970s the Internal Revenue Code has allowed United States manufacturers to create special export subsidiaries, initially known as Domestic International Sales Corporations and later called Foreign Sales Corporations, whose income receives partial tax deferral. At the
