Ninth Circuit Denies Altera’s Petition for Rehearing: After the Ninth Circuit Held Against Altera, the Ninth Circuit Denies Altera’s Petition for Rehearing En Banc

Sullivan & Cromwell LLP - November 15, 2019

On November 12, 2019, in Altera Corporation v. Commissioner, the U.S. Court of Appeals for the Ninth Circuit denied Altera’s petition for rehearing en banc of its case, following the Ninth Circuit’s decision against Altera issued on June 7, 2019 which reversed a U.S. Tax Court ruling and deferred to the U.S. Treasury’s interpretation of Section 482 of the Internal Revenue Code stating that U.S. corporations must allocate to their non-U.S. affiliates a portion of the cost of stock-based compensation for employees to the extent the work of such employees is for the benefit of the corporations’ non-U.S. affiliates pursuant to what is referred to as “qualified cost sharing arrangements.”