D.C. Hearing Considers Whether Collateral Estoppel Bars Transfer Pricing Method


Miller Baker, who successfully argued for the taxpayers in the District of Columbia administrative hearing Microsoft Corp. Inc. v. Office of Tax and Revenue (OTR), said that OTR had a chance to appeal the hearing office’s ruling and made a strategic choice not to do so because it was afraid of losing on appeal and having precedent set that its transfer pricing audit methodology was inappropriate. “Having made that choice, they should have to live with the consequences of it,” Mr. Baker said. “If you want to talk about fairness, that is a fair result.”