The Alabama Tax Tribunal (Tribunal) affirmed the Alabama Department of Revenue’s (DOR) assessment that denied Credit Suisse Boston USA Inc.’s (Credit Suisse) deduction for interest expense paid to a related member. Credit Suisse argued that the interest expense payments were exempt from Alabama’s addback requirement because the expense to its foreign affiliate generated income for the foreign affiliate subject to tax in a foreign jurisdiction, and that the payments had a business purpose. The DOR argued that Credit Suisse failed to submit any documentation showing that the interest expenses it paid to the related companies were subject to tax in a foreign jurisdiction which has an income tax treaty with the United States. The Tribunal found for the DOR because likewise, Credit Suisse failed to provide any documentation to the Tribunal in support of its position, and therefore, the “transactions are presumed to have tax avoidance as their principal purpose.” Credit Suisse First Boston USA Inc. v. Ala. Dept. Rev., Ala. Tax Tribunal, Dkt. No. BIT. 15-1666, 9/07/2017.