The Indiana Supreme Court unanimously held that Penn Entertainment was not required to add back wagering taxes it paid to other states when computing its Indiana taxable income.
In the latest episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor slice up the decision in Penn Entertainment v. Indiana Department of Revenue, an opinion that is as much about apportionment and tax policy as it is about add-backs. They walk through the court’s pie-chart explanation of “double apportionment,” its step-by-step framework for deciding whether another state’s tax is “based on” or “measured by” income, and what the ruling may mean for taxpayers in other states with similar add-back language.
They also keep a running tally of the pie puns (listeners are invited to keep score and let us know who won) and tackle an overrated/underrated debate on food trucks.
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