Tax Court Grants Protective Order in Eaton Trial

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Aug. 7 — Major portions of Eaton Corp.'s transfer pricing trial in Chicago will be closed to the public, under the terms of a protective order (Eaton Corp. v. Commissioner, T.C., No. 5576-12, order, 8/5/15).

The order, granted Aug. 5 by presiding Judge Kathleen Kerrigan, is intended to protect proprietary and confidential documents and other commercial information related to Eaton's business operations that aren't in the public domain or otherwise available to third parties.

In a case of first impression, Eaton Corp. is challenging the cancellation of two advance pricing agreements covering tax years 2001-05 and 2006-10. The cancellations triggered an income adjustment of $368.6 million and tax and penalties of $127 million for tax years 2005-06.