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Liberty Global to Appeal Its Foreign Tax Credit Tax Court Loss

Liberty Global has announced that it will challenge the November 2023 Tax Court finding that the company had incorrectly boosted its foreign tax credits by failing to account for gains that exceeded the total foreign loss on the sale of its stake in another company.

The Tax Court rejected the company’s argument that Treasury Regulation Section 1.904(f)-2(d)(1) should apply to classify the sale gain as foreign-source income, asserting that the statute was clear and that the regulation solely pertains to the gain necessary to recapture the overall foreign loss balance.

This decision will mark Liberty Global's second court appeal in recent months, following its December 2023 decision to appeal its economic substance doctrine district court loss to the Tenth Circuit.

Key Contacts

Adam Blakemore
T. +44 (0) 20 7170 8697

Linda Z. Swartz
T. +1 212 504 6062

Jon Brose
T. +1 212 504 6376

Andrew Carlon
T. +1 212 504 6378

Mark P. Howe
T. +1 202 862 2236

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