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
transfer pricing
MTC SITAS Program addresses Eversheds Sutherland confidentiality concerns and pushes forward with 5 signatory states
On February 2, the Multistate Tax Commission’s State Intercompany Transactions Advisory Service Committee (SITAS) held a public teleconference to address comments provided by Eversheds Sutherland and to schedule the first meeting of those states that have signed on to an Information Sharing Agreement (Agreement).
Eversheds Sutherland submitted a letter to the MTC Executive Committee in…
California’s attempt to extend transfer pricing to sales tax
Sales taxes are imposed by all but five states. While the types of sales that are subject to tax vary significantly by state, virtually all sales tax states look to the actual consideration paid by the buyer to the seller to determine the sales price. Despite this long-standing and almost uniform measure of the sales…
Transfer pricing and its effects on state tax
In this episode of the SALT Shaker Podcast, host and Associate Chris Lee is joined by Associate Justin Brown to discuss transfer pricing and how it affects state tax and in particular how states may use transfer pricing or other theories to make adjustments to sales tax. Recently, some jurisdictions have challenged sales tax on…
Potential State Tax Implications of Altera Corp. v. Commissioner
The U.S. Supreme Court recently denied cert in Altera Corp. v. Commissioner. This podcast addresses the Altera decision’s impact on transfer pricing and deference. This podcast also addresses prior state transfer pricing decisions and strategies to defend state transfer pricing audits.
For more information on this topic here is a link to a recent article…
The Impact of Altera on State Tax Transfer Pricing
On June 22, the US Supreme Court denied Altera Corp.’s petition for certiorari seeking review of the US Court of Appeals for the Ninth Circuit’s decision upholding the US Department of the Treasury’s transfer pricing regulation requiring related participants in cost-sharing agreements to include stock-based compensation costs in the joint cost pool to comply with…
Expanding the Water’s Edge: Four Trends to Watch in International Issues in State Taxation
Traditionally, mandatory worldwide combined reporting was the state corporate tax issue of most concern to companies engaged in international business. States are now moving toward a water’s-edge unitary combination method for both US and foreign-based companies.
In his article for the Spring 2017 edition of Partnering Perspectives, Eversheds Sutherland (US) Senior Counsel Eric Coffill covers…
A Pinch of SALT: Should Taxpayers Embrace MTC’s ALAS or Keep It at Arm’s Length?
In their article for State Tax Notes, Sutherland attorneys Jonathan Feldman, Stephen Burroughs and Timothy Gustafson analyze the Multistate Tax Commission’s Arm’s-Length Adjustment Service (ALAS) program. While most taxpayers instinctively cringe at any new MTC initiative, the ALAS program is a potential positive for corporate taxpayers due to some disturbing trends arising in state…
Heisman Would Be Proud: Taxpayer Stiff-Arms Indiana DOR with Transfer Pricing Studies
By Stephen Burroughs and Jonathan Feldman
The Indiana Tax Court granted summary judgment to Columbia Sportswear USA Corp., (“Columbia”), determining that: (1) Indiana’s alternative apportionment statute did not permit the Department to equitably adjust Columbia’s tax base; and (2) Indiana’s standard sourcing rules clearly reflected Columbia’s Indiana source income because transfer pricing studies supported Columbia’s…
Royal Treatment: No Evidence that Rent-A-Center’s Intercompany Royalty Payments Distorted Indiana Income
By Mike Kerman and Madison Barnett
The Indiana Tax Court granted summary judgment to Rent-A-Center East, Inc. (RAC), finding that the Department of Revenue’s determination that RAC and two affiliates should have filed a combined return was improper. This case was on remand from a prior Indiana Supreme Court ruling (please see our prior coverage…