Explanation of Issues in PPL Corporation v. Commissioner of Internal Revenue

American Bar Association Preview of United States Supreme Court Cases, Vol. 40, Issue 5, pp. 201-04, 2013

4 Pages Posted: 26 Feb 2013  

Jordan M. Barry

University of San Diego School of Law

Janelle N. Darnell

University of San Diego School of Law

Date Written: February 19, 2013

Abstract

This short article briefly summarizes the chief arguments of PPL corporation and the IRS as to whether the United Kingdom's Windfall Tax qualifies for a United States foreign income tax credit under 26 U.S.C. ยง 901. PPL argues that the Windfall Tax is a tax on income and that PPL is therefore entitled to a foreign tax credit that will greatly reduce its federal income tax liability. The IRS argues that the Windfall Tax is a tax on value and, accordingly, that PPL is not entitled to a foreign tax credit. This case could have major implications for U.S. corporations, which claim over $100 billion in foreign tax credits each year.

Keywords: tax, international tax, corporate tax, foreign tax credits, PPL, Entergy, income tax, value tax, Section 901, Section 902, deferral, territoriality, worldwide taxation, double taxation, windfall tax, privatization, privatisation, utilities, utilities regulation, energy taxation, valuation

JEL Classification: H20, H25, H29, K34

Suggested Citation

Barry, Jordan M. and Darnell, Janelle N., Explanation of Issues in PPL Corporation v. Commissioner of Internal Revenue (February 19, 2013). American Bar Association Preview of United States Supreme Court Cases, Vol. 40, Issue 5, pp. 201-04, 2013 . Available at SSRN: https://ssrn.com/abstract=2222423

Jordan Barry (Contact Author)

University of San Diego School of Law ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

Janelle N. Darnell

University of San Diego School of Law ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

Paper statistics

Downloads
153
Rank
157,514
Abstract Views
783