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Tag: Subsidiary

IRS re-writes Medtronic tech license for $1B deficiency

June 9, 2016 Griffin Klema Leave a comment
IRS Tax Return

License between Medtronic and its wholly owned subsidiary deemed not arm’s length transaction. Opens contract to attack by IRS, re-assesses Medtronic’s income, and increases its tax liability. Today the United States Tax Court issued a memorandum opinion that significantly and materially increased the royalty rate in a technology license agreed-to

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