On November 9, 2017, the United States Court of Appeals for the Ninth Circuit affirmed the Tax Court’s decision in favor of Compass Lexecon’s client, the Commissioner of Internal Revenue. The Tax Court’s ruling turned on whether an investment by the Petitioner in a foreign entity named Foppingadreef could be treated as equity for which HP could claim foreign tax credits. The Petitioner, Hewlett-Packard Company and Consolidated Subsidiaries, had sought approximately $177.6 in foreign tax credits and a $15.6 million capital loss deduction in connection with the transaction at issue. In its ruling, the Tax Court held that Petitioner’s investment, which Petitioner had characterized as equity, was more appropriately characterized as debt. David J. Ross of Compass Lexecon provided expert testimony on this issue, and his testimony was specifically cited by the Tax Court as being “of particular import to our decision.” Mr. Ross was assisted by Kevin D. Hartt.