WASHINGTON – The U.S. Supreme Court on Wednesday heard arguments from PPL Corp. and federal tax authorities in a case whose outcome could determine the fate of billions of dollars in corporate profits.
The dispute, two decades in the making, involves a British tax imposed on PPL of Allentown after it bought one of many businesses privatized by former British Prime Minister Margaret Thatcher.
At issue, specifically, are U.S. tax breaks for companies that pay foreign taxes. U.S. multinationals and lawmakers are watching closely — not only because the Obama administration has taken a very public stance against such tax breaks, but also because the nine Supreme Court justices rarely hear tax cases.
“The IRS recognizes the stakes in this case are broader than this particular [British] tax,” said Dirk Suringa, a former Treasury official, now a partner at law firm Covington & Burling.
Read more: http://www.mcall.com/news/nationworld/mc-sumpreme-court-hears-ppl-case-20130220,0,3330844.story
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