Case Information
- Court: United States Court of Appeals, Ninth Circuit
- Case No: Nos. 06-74246, 06-74269
- Applicant: Xilinx, Inc., and Consolidated Subsidiaries
- Defendant: Commissioner of Internal Revenue
- Judgment Date: March 22, 2010
Key Points of the Judgment
Background
Core Dispute
Court Findings
Outcome
Transfer Pricing Method Used
Major Issues and Areas of Contention
- Inclusion of ESO Costs: The primary issue was whether ESO costs should be included in the cost-sharing agreement. The Commissioner’s insistence on including these costs was met with resistance as it conflicted with the arm’s length principle.
- Interpretation of Regulations: There was significant ambiguity in the tax regulations concerning the inclusion of all costs in CSAs, leading to a dispute over whether specific rules or general principles should control the interpretation.
- Impact on Tax Parity: The decision hinged on whether the exclusion of ESO costs would disrupt tax parity between related and unrelated entities.