Liberty Global Is a Warning Against High-Level Business Purpose
Tax attorney Joshua Odintz was quoted in a Tax Notes article about a U.S. District Court decision made against Liberty Global on the economic substance doctrine. The court held that the company maneuvered a subsidiary under its U.K. parent to avoid U.S. tax. The article goes over the steps involved in the transaction and how the decision serves as a warning for taxpayers not to rest solely on a high-level business purpose for transactions. Mr. Odintz highlighted the importance of gathering factual and detailed information regarding transactions, especially in relation to an economic substance doctrine case.
"In an economic substance doctrine case, it's important to marshal all the facts to show not just a high-level business purpose, but the nitty-gritty of getting to all the facts and details that indicate why the transaction was undertaken, driven by business. Yes, tax should be involved, but the transaction wasn't driven by tax," he said.
READ: Liberty Global Is a Warning Against High-Level Business Purpose (Subscription required)