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By Erin Kelechava in Washington, DC

by Jack Grocott in Delhi

Sean Foley Landon McGrew The US Court of Appeals for the Ninth Circuit has re-issued its opinion in Xilinx, Inc. v. CIR, No. 06-74246 (9th Circuit March 22 2010), holding that stock-based compensation costs incurred in connection with a cost sharing arrangement were not required to be shared. This decision reverses an earlier Ninth Circuit opinion (Xilinx, Inc. v. CIR, No. 06-74246 (9th Circuit May 27, 2009) which held that such costs were required to be shared, even if such costs would not have been shared in an arm's length transaction. The court withdrew its earlier opinion before the issuance of the new opinion. The court's re-issued opinion also affirms the Tax Court's decision in Xilinx, Inc v CIR, 125 T.C. 37 (2005).

Two advisers have become partners of Freshfields Bruckhaus Deringer.

Rajendra Nayak Ganesh Pai The Authority for Advance Rulings (AAR) in India, in the case of E*Trade Mauritius Ltd. (taxpayer) [2010- TIOL-20-ARA-IT] recently ruled on the taxability of sale of shares of an Indian company under the India-Mauritius Tax Treaty (treaty). The taxpayer, a tax resident of Mauritius (having a tax residency certificate) held shares in an Indian company which were transferred to another Mauritius company. The taxpayer claimed that gains arising on such transfer were not taxable in India but was taxable only in Mauritius, under the treaty. However, the tax authority had earlier (before the taxpayer requested a ruling from the AAR) sought to deny the capital gains tax benefit to the taxpayer and had issued a withholding tax order directing the payer to withhold taxes on the gains. Against such order, the taxpayer filed a writ petition before the Bombay High Court. The court, without adjudicating on the technical merits of the case, had directed the release of the tax amount from the transaction in favor of the tax authority. Aggrieved by this, the taxpayer filed an application before the AAR seeking a ruling on the taxability of the sale of shares in such transaction.

A monthly commentary on the notable facts, figures and goings-on in the tax world. Suitable items should be sent to taxrelief@euromoneyplc.com

Faruk Sabuncu Bar¦s Kencebay The Constitutional Court decision about the cancellation of the law that provides 0% withholding tax on the gains of non-residents has been published in the Official Gazette and will become effective from October 8 2010.

Passarella Abogados is a new firm in Buenos Aires that has been set up by Leandro Passarella, a well-known tax lawyer. He advises corporations on the Argentine tax implications of M&A transactions, reorganisations and leveraged buy-outs, and the tax-efficient structuring of businesses and start-ups in general. He also designs tax structures for regional transactions and operations. His practice includes the legal assistance to clients in tax audits and litigation.

Heike Weber Two lawyers from Continental Europe have made the step-up after Allen & Overy's annual announcement of new partners.

Nélio Weiss Philippe Jeffrey The Administrative Tax Appeals Council (CARF) recently announced the legal grounds used in a controversial decision issued in 2009 in connection with the Brazilian controlled foreign corporation (CFC) rules.