On 4 April, the US District Court for the District of Colorado granted summary judgment to Liberty Global Inc. (LGI) in Liberty Global Inc. v. United States, ruling that the Section 245A temporary regulations (the Temporary Regulations) adopted by the Treasury Department on 18 June 2019, are invalid because they were issued without following the Administrative Procedure Act's (APA) notice and comment requirements. Companies should assess the impact of LGI on relevant positions. This nuanced analysis may differ depending on where the taxpayer is located and whether and when the taxpayer distributed earnings that were subject to the Temporary Regulations. The government is expected to appeal the decision.
Actions to consider: Companies should assess the impact of Liberty Global on relevant positions. This nuanced analysis may differ depending on where the taxpayer is located and whether and when the taxpayer distributed earnings that were subject to the Temporary Regulations. The government is expected to appeal the decision.
