Tax on Investor-state Awards
Article from: TDM 5 (2006), in Investor-State Disputes - International Investment Law
This decision from the United States Tax Court from a number of years ago may be of some interest. RJR Nabisco, the parent of Aminoil, faced tax on the award received in Aminoil v. Kuwait. The question presented to the US tax court was whether a certain "inflation factor" that was included as an element of the award should be considered as income or capital gain - thus triggering different tax rates in the United States. Charles Brower testified as an expert witness for RJR Nabico, and his testimony is described by the Court. (A number of tax issues are addressed in the opinion ...