Amazon.com v. Commissioner, No. 17-72922 (9th Cir. 2019)Annotate this Case
Amazon filed a petition in the tax court challenging the IRS's valuation of a buy-in payment for pre-existing intangibles related to the company's contribution to a cost sharing arrangement, whereby Amazon and a holding company for the European subsidiaries would be treated as co-owners of the intangibles. The tax court ruled primarily with Amazon and the Commissioner appealed.
The Ninth Circuit affirmed the tax court's decision and held that the definition of "intangible" in the applicable transfer pricing regulations did not include residual-business assets. Although the language of the definition is ambiguous, the panel held that the drafting history of the regulations shows that "intangible" was understood to be limited to independently transferable assets.