The Louisiana Court of Appeal reversed and remanded Bridges v. Polychim USA, Inc., No. 581,759, a case in which the trial court held that an out-of-state corporation was subject to the franchise tax by virtue of its indirect ownership interest in a general partnership doing business in Louisiana. Bridges v. Polychim USA, Inc., No. 2014 CA 0307. The court of appeal’s decision is important because it rejected the Louisiana Department of Revenue’s taxability theories, including a unitary business-type standard and a tax avoidance argument, and likely impacts numerous taxpayers with pending refund or assessment cases.
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