UK Co. Liable For $18M Tax On Boat Income, Tax Court Says

Law360 (January 8, 2020, 8:17 PM EST) -- A British company that chartered a ship to decommission offshore wells in the Gulf of Mexico faces an $18 million tax bill after the U.S. Tax Court determined Wednesday that the company's activities could be subject to U.S. tax.

Although the Outer Continental Shelf is generally not considered part of America for tax purposes, the activities of the ship, owned by the U.K.'s Adams Challenge Ltd., were connected to the exploration of oil and gas wells in the area, making them subject to U.S. tax, Tax Court Judge Albert Lauber said in the court's opinion. The company's activities also fell within a U.K.-U.S....

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