Starr International Co. v. United States

This appeal stemmed from an attempt by Starr, a Swiss-domiciled company, to avail itself of a bilateral tax treaty between the United States and Switzerland to reduce its tax rate on U.S.-source dividend income. The DC Circuit reversed the district court's dismissal of Starr's tax refund claim as raising a nonjusticiable political question and remanded for further proceedings. The court explained that the question as to whether the IRS properly found Starr ineligible for treaty benefits under Article 22(6) of the Treaty did not raise a political question.Because Starr could proceed with its tax refund claim, the court held that Starr did not have a cause of action under the Administrative Procedure Act (APA). Rather, the claim was properly brought under 26 U.S.C. 7422. Therefore, the court vacated the district court's decision as to the APA claim and remanded with instructions to dismiss the claim. View "Starr International Co. v. United States" on Justia Law