The Alaska Supreme Court found that Alaska’s combined reporting statute requiring taxpayers to include certain foreign affiliates in its income tax return was constitutional. The court rejected the taxpayer’s arguments that Alaska’s tax haven corporation reporting statute was (i) void for vagueness as it violated the Due Process Clause, (ii) discriminated against interstate commerce in
Alaska’s DOR May Issue a Subpoena on Out-of-State Company but Enforcement is Another Issue
The Alaska Superior Court denied the Alaska Department of Revenue’s (“DOR”) petition to enforce an administrative subpoena against Turo, Inc. (an out-of-state car sharing company), which sought all of the company’s business records from its inception in 2009 to 2017 in connection with an ongoing investigation regarding vehicle rental taxes. The court held that the
SALT Society
We at the SALT Shaker are serious about our mission to shake things up in state and local tax, which is why we are launching SALT Society.
In addition to tracking legislation, analyzing cases and previewing upcoming presentations, we want to share the happenings that impact the lives of state and local tax practitioners. The
Dazed and Confused: Alaska Supreme Court Determines Foreign-Source Dividends are Includable in the Apportionable Tax Base
The Alaska Supreme Court held that a foreign member of a water’s edge unitary group must include its foreign dividend income in the Alaska apportionable tax base, regardless of whether the income is “effectively connected income” (ECI) for federal income tax purposes. Alaska law incorporates the Internal Revenue Code, including the ECI
Alaska Supreme Court Can’t See Russia, But Does See Unitary Business
By Zachary Atkins and Prentiss Willson
The Alaska Supreme Court held that a petroleum company and its subsidiaries were engaged in a unitary business and upheld the state’s use of an alternative apportionment formula for corporate income tax purposes. The taxpayer, Tesoro Corporation, was a petroleum refiner and marketer with its subsidiaries organized into five