McKesson Takes on IRS in Lawsuit: Transfer Pricing Report

Hello and welcome to this week’s Transfer Pricing Report. Cost-sharing agreements are back in the news with McKesson’s “Altera 2.0" lawsuit challenging the IRS and Treasury regulations requiring companies to include stock-based compensation in cost-sharing agreements between related parties.

The pharmaceutical company sued the US over a $9.6 million tax bill that it says it shouldn’t have to pay, arguing that the rules requiring it to include stock-based compensation in cost-sharing agreements among its subsidiaries are invalid because they violate transfer pricing rules and the Administrative Procedure Act.

The challenge is similar to one made by Altera in a case ...