The Impact of Altera on State Tax Transfer Pricing
On June 22, the US Supreme Court denied Altera Corp.’s petition for certiorari seeking review of the US Court of Appeals for the Ninth Circuit’s decision upholding the US Department of the Treasury’s transfer pricing regulation requiring related participants in cost-sharing agreements to include stock-based compensation costs in the joint cost pool to comply with the arm’s-length standard.
The split Ninth Circuit court had previously reversed a unanimous, en banc decision of the Tax Court…
