In a closely watched case concerning the valuation of preexisting intangibles in cost-sharing arrangements (CSAs), the United States Tax Court handed the taxpayer a victory in Veritas, Inc. v. Commissioner, 133 T.C. No. 14 (2009), released December 10, 2009. At issue was the IRS’s claim that preexisting intangibles contributed by Veritas Inc., a US corporation (Veritas US), to a CSA with its Irish subsidiary (Veritas Ireland) had a value of more than $1.5 billion, nearly 10 times the value determined by the taxpayer.
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