The Oregon Tax Court issued its second decision in less than a month regarding combined returns that include an insurance company, this time finding for the taxpayer. Last month, in Costco Wholesale Corp. v. Oregon Dept. of Rev., TC 4956, (Ore. Tax Ct. July 16, 2012), the court held that the income of Costco’s
insurance companies
The Multistate Tax Commission Restructures Apportionment of Financials, Seeks to Tax Pass-Throughs
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Posted in Financial Services
The Multistate Tax Commission (MTC) is in the midst of two projects that focus on the financial services industry. The first project is an effort to amend the recommended formula for the apportionment and allocation of the net income of financial institutions, first adopted by the MTC in 1994. The second project, referred to as the “non-income taxpayer project,” involves the MTC’s drafting of a model statute that would subject certain partnerships and other pass-through entities to an entity level state income tax to the extent their income passes through to an entity that is not itself subject to the state’s income tax.Continue Reading The Multistate Tax Commission Restructures Apportionment of Financials, Seeks to Tax Pass-Throughs
Inclusion of Insurance Company in Unitary Return – When Is an Insurance Company “Subject to” Premium Tax?
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When is an insurance company “subject to” premium tax? Recently, the Indiana Tax Court answered this question in United Parcel Service, Inc. v. Indiana Department of Revenue, 49T10-0704-TA-24 (December 29, 2010), concluding that an insurance company is “subject to” premium tax when it is placed under the authority, dominion, control, or influence of the tax, and not simply when it is required to pay the tax.
In United Parcel Service, the Indiana Department of Revenue had determined that UPS should have included the income of two affiliated foreign reinsurance companies in its Indiana worldwide unitary corporation income tax return. UPS, however, maintained that its affiliated foreign reinsurance companies should be excluded because the Indiana statutes provided that there is no income tax on the adjusted gross income of insurance companies “subject to” the Indiana gross premium tax.Continue Reading Inclusion of Insurance Company in Unitary Return – When Is an Insurance Company “Subject to” Premium Tax?
Unclaimed Property: The Year in Review
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As the year winds down and we reflect on what has occurred in the world of unclaimed property over the last 12 months, we find it has been an unusually action packed year. Joining the various other countdowns to 2011, here is the 2010 Countdown of the Biggest Unclaimed Property Events of the Year.Continue Reading Unclaimed Property: The Year in Review
Companies with Captive Insurance Affiliates – Look Out for a Premiums Tax Increase
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On December 10, 2010, the largest bipartisan organization of state representatives – the National Council of State Legislators – voted to support the adoption of a multistate compact that could affect many captive insurance companies.
The compact provides for the centralized collection and allocation of state premium taxes imposed on property and casualty insurance obtained…