Bank of New York Mellon Corporation v. Commissioner of Internal Revenue

Case Updates

In its brief, the U.S. Chamber and the Cato Institute urged the Supreme Court to review a Second Circuit decision that affirmed a tax court’s ruling that the “economic substance doctrine” allowed it to deny foreign tax credits claimed by taxpayers on certain international loan products called Structured Trust Advantaged Repackaged Securities (“STARS”).

The joint brief argues that the Second Circuit’s novel and expansive application of the doctrine exacerbates a circuit split and defeats the Foreign Tax Credit’s purpose of avoiding double taxation. The brief also explains that the decision undermines predictability of the tax code and imposes unwarranted costs on business and the economy.

Scott P. Martin of Gibson, Dunn & Crutcher LLP served as counsel for the amici.