8--COHN 749-760
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NOTES 749 Tax Lawyer, Vol. 53, No. 3 NOTE FOREIGN TAX CREDIT DENIED TO SHAM TAX AVOIDANCE TRANSACTION: COMPAQ COMPUTER CORP. V. COMMISSIONER In Compaq Computer Corp. v. Commissioner,1 the Tax Court held that Compaq Computer Corp. was not entitled to a foreign tax credit from an American Depository Receipt (“ADR”) arbitrage arrangement. The court stated that becaaus the transaction lacked economic substance and a valid non-tax business purpose, favorable tax treatment would contravene the design...