Smith Brain Trust
How a Repatriation-Tax Challenge Before SCOTUS Could Upend the Tax Code
In 2005, Kathleen and Charles Moore invested $40k in exchange for 11 percent of equity in India-based, ag-equipment company KisanKraft. The Washington state couple received no income from its shares over the following decade, as the company operationally reinvested its profits. Nonetheless, in 2018 the U.S. government handed the Moores a $14,729 tax bill on the profits earned by the foreign entity. Reluctantly they paid but subsequently sued, questioning the constitutionality of taxing unrealized income without apportionment among the states.