Tag: Secondary adjustments

Adjustments that arises from imposing tax on a secondary transaction.

US vs. BMC Software. March 2015

US vs. BMC Software. March 2015

The United States Court of Appeals for the Fifth Circuit issued its ruling on the case of BMC Software, Inc. v. Commissioner of Internal Revenue. The case discussed issues relating to § 965 regarding repatriation of dividends and § 482. Following an audit, BMC had entered into a Closing Agreement, making primary and secondary adjustments to its transfer pricing arrangements. The Commissioner argued that the secondary adjustment affected BMC’s application of § 965. The court ruled in favor of BMC, reversing the tax court’s previous ruling. US-vs-BMC-Appeal-from-a-Decision-of-the-U.S.-Tax-Court ... Continue to full case