Virginia Company Receives Patent for Transfer Pricing Study Method Used to Make Adjustments to Tax Base

On May 11, a Fairfax, Va., company was granted a patent for a method of developing a transfer pricing analysis for state tax administrators. The patent was granted at a time when the U.S. Congress is considering legislation that would limit the grant of patents for tax avoidance strategies. But because Chainbridge Software's system is aimed at identifying tax avoidance, the patent could escape the restrictions envisioned by H.R. 1249 and S. 23.