Sysco Gets $324 Million Dividend Deduction After Varian Decision

Sysco Corp. may follow the lead of another major company in claiming dividends from foreign subsidiaries, a judge at the US Tax Court said.

The Aug. 26 decision in Varian Medical Systems Inc. v. Commissioner involved “the same principal issues as the ones addressed in the parties’ Motions,” Judge Emin Toro—the same Tax Court judge who wrote the Varian opinion—said in an order earlier this month. The court granted part of the motions for summary judgment on both sides, allowing Sysco to claim $324 million in reported dividends as part of its taxable income while also letting the IRS limit ...