Scott Stewart

Since joining Mayer Brown in 1989, Scott M. Stewart’s practice has focused exclusively on tax disputes, including transfer pricing issues arising under I.R.C. §482 and intercompany debt matters arising under I.R.C. §385. He represents taxpayers at all levels of federal tax controversy, including audits, administrative appeals before the Internal Revenue Service, mediation involving the Appeals division of the IRS, and litigation before the United States Tax Court.

Recognized by Chambers USA each year from 2006 through 2018, Scott is described as “a talented litigator and corporate advisor” who wins the confidence of clients with his “extraordinary communication skills,” “professional demeanor” and “broad and deep experience.”

He is “recommended for his spot-on judgment and analysis,” “his responsiveness and strategic thinking” and his “ability to anticipate issues before they arise.” Chambers describes him as “easy to work with” and “very knowledgeable on the subject matter, attentive to client needs and quick to learn the client’s issues and business.”

Chambersnotes that he is “particularly adept at handling transfer pricing cases at all levels” and “frequently leads on market-defining transfer pricing disputes, often with multi-billion dollar outcomes.”

Scott has extensive experience with deductibility of interest expense in related-party transactions, including debt-versus-equity characterization and “sham transaction” and “economic substance” issues, dating back to his involvement in the landmark Nestlé Holdings case during the 1990s.

Recently, Scott led the Mayer Brown team that filed 15 Tax Court petitions concerning debt-equity issues on behalf of Tyco International and related companies. The cases, which involved $3 billion in interest expense incurred from 1998 through 2000 and implicated an additional $6.5 billion in interest expense incurred from 2001 through 2007, were settled for 5% of the amount in dispute.

Scott is also experienced in all aspects of international transfer pricing, including cross-border movements of tangible and intangible property, advance pricing agreements, cost sharing arrangements, Section 6662 documentation, Section 936 Puerto Rico possessions corporations and issues related to the OECD’s Base Erosion and Profit Shifting (BEPS) initiative.

His transfer pricing litigation experience includes a number of major cases of the last three decades, such as National Semiconductor, Seagate Technology, Nestlé Holdings and United Parcel Service.

Education :

• Creighton University, BS, cum laude
• Cornell University, MBA, with distinction (accounting & finance)
• Harvard Law School, JD

Admissions :

• Illinois
• US Tax Court

Experience :

• General Foods Credit Investors #3 Corporation v. Director, New Jersey Division of Taxation, Tax Court of New Jersey Docket No. 011330-15
• Covidien LP, f.k.a. Tyco Healthcare Group, LP, Covidien Holding Inc., f.k.a. SWD Holding, Inc. I, Tax Matters Partner v. Commissioner of Internal Revenue, Tax Court Docket No. 16663-13 (filed July 22, 2013) (debt-equity characterization).
• Tyco Electronics Corporate Holdings, Inc., as successor in interest to Tyco Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16661-13 (filed July 22, 2013) (debt-equity characterization).
• Tyco Electronics Corp., as successor in interest to Tyco International (PA), Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16659-13 (filed July 22, 2013) (debt-equity characterization).
• Tyco Electronics Corporate Holdings, Inc., as successor in interest to Tyco (US) Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16658-13 (filed July 22, 2013) (debt-equity characterization).
• Tyco Electronics Corp., as successor in interest to Tycom Simplex Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16651-13 (filed July 22, 2013) (debt-equity characterization).
• Sherwood Medical Company I v. Commissioner of Internal Revenue, Tax Court Docket No. 16652-13 (filed July 22, 2013) (Withholding Tax).
• Saba Partnership, Brunswick Corporation, Tax Matters Partner, et al. v. Commissioner of Internal Revenue, 78 T.C.M. (CCH) 684 (1999), vacated by 273 F.3d 1135 (D.C. Cir.  2001), remanded to 85 T.C.M (CCH) 817 (2003) (challenge to investment partnerships as devoid of economic substance).
• National Semiconductor Corporation v. Commissioner of Internal Revenue, 67 T.C.M. (CCH) 2849 (1994), acq. in result, 1995-2 C.B. 1 (I.R.C. § 482 reallocations).