On July 1, 2022, the New York State Department of Taxation and Finance issued the third set of “final draft” regulations relating to the corporation franchise tax reform that took effect for tax years beginning on or after January 1, 2015. The third set of draft regulations relate to apportionment, and contain revisions to the
New York
New York’s false positive: Reforming the False Claims Act
By Jeffrey Friedman & Cyavash Ahmadi on
Posted in In the News, New York
New York is considering expanding its False Claims Act to “knowingly or illegally failing to file” a tax return.
Not only should the legislature reject the proposed legislation, New York should roll back its FCA so it does not apply to taxes.
In this installment of “A Pinch of SALT” in Tax Notes State,…
The complex questions of combined reporting
By Jeremy Gove & Cyavash Ahmadi on
In this episode of the SALT Shaker Podcast, Eversheds Sutherland Associate Jeremy Gove teams up with Associate Cyavash Ahmadi to discuss the complexities of combined reporting, specifically comparing and contrasting the combined reporting regimes in New York and California. They discuss several of the nuances of both states’ systems and even debate what “Joyce v.…
A deep dive into the attempt to expand the False Claims Act
By Nikki Dobay on
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay welcomes back Stephanie Do, Senior Tax Counsel for the Council On State Taxation (COST), for a discussion about two recent proposals to expand the False Claims Acts in Connecticut and New York.
As our listeners know, most…
Years in the making: New York issues two sets of “final draft” corporate tax reform regulations
Posted in New York
On April 29, 2022, the New York State Department of Taxation and Finance issued two sets of “final draft” regulations relating to the corporation franchise tax reform that took effect for tax years beginning on or after January 1, 2015. Since the sweeping corporate tax reform was enacted, the Department has published a series of…
New York Court allows art sales tax False Claims Act suit to proceed
By Daniel Schlueter & Justin Brown on
Posted in New York
The New York State Supreme Court, Appellate Division, affirmed a New York trial court decision denying a taxpayer’s motion to dismiss a False Claims Act suit brought against the taxpayer in relation to its sales of artwork to an alleged art collector under a resale exemption. According to the complaint, an employee of the taxpayer…
Get out of town! Court upholds New York City tax applying investee apportionment
Posted in New York
On April 12, 2022, the Appellate Division, First Department dismissed a taxpayer’s appeal from the New York City Tax Appeals Tribunal, and held that the Tribunal’s decision to uphold a tax assessment on an out-of-state entity’s gain from the sale of a partnership interest was “rational.”[1]
The taxpayer was an investment vehicle that formed…
New York False Claims Act case remains in federal court
By Jonathan Feldman & Jeremy Gove on
Posted in Income Tax, New York
The Southern District of New York denied a plaintiff-relator’s motion to remand a dispute over the defendant’s transfer pricing arrangement brought under the New York’s False Claims Act to New York state court. The plaintiff initiated the suit on behalf of the State of New York in state court alleging that the company did knowingly…
You’re not imagining it, it’s real! Picasso painting exempt from sales tax
By Chelsea Marmor & Michael Hilkin on
Posted in New York
The New York State Tax Appeals Tribunal held that a limited liability company was entitled to a refund of sales tax paid on the purchase of a one-half interest in a Pablo Picasso painting because the taxpayer leased its share of the painting on the same day the painting was purchased. On April 20, 2015,…
New York Tax Appeals Tribunal concludes IT managing and monitoring services are taxable
By Scott Wright, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, New York
The New York Tax Appeals Tribunal upheld the New York Division of Tax Appeals’ determination that an information technology security company provides a taxable protective service. The taxpayer provides monitoring and firewall management services, by configuring its customers’ software and devices to prevent malicious activity. The Department of Taxation and Finance asserted that the taxpayer’s…