Main Menu
Court Rules Nexus Statute Trumps Consolidated Return Statute

The Jefferson Circuit Court recently held in an appeal from the Kentucky Board of Tax Appeals that an affiliated group of businesses filing a Kentucky consolidated tax return may take the position that their out-of-state subsidiaries should not be included in the return.

 

Greenebaum represented AT&T in AT&T Corp. v. Department of Revenue, in which the Jefferson Circuit Court held that the elective consolidated corporation income tax return statute (KRS 141.200 as in effect for tax years and elections made prior to 2005) did not trump the nexus provisions of KRS 141.040. In so holding, the Court ordered the Department of Revenue to pay refunds to AT&T computed by not including AT&T subsidiaries without a physical presence in Kentucky in AT&T's Kentucky consolidated income tax returns. The Court also found violations of the Commerce Clause and Due Process and also invalidated 103 KAR 16:200, the administrative regulation concerning the Kentucky consolidated income tax return method.

 

For more information on this case and the court's ruling, click here.

 

If you have questions about this topic or any other legal issue, please contact any member of the firm's State and Local Tax Team.

 


 

Even though the content of the above Greenebaum Doll & McDonald e-bulletin is primarily informative, state and federal law obligates us to inform you that this is an advertisement. You have received this advisory because you are a client or friend of the firm.

 


About Greenebaum Doll & McDonald PLLC
Greenebaum Doll & McDonald PLLC is a widely-respected business law firm with approximately 200 legal professionals in six offices, serving local, national and international clients in virtually every industry. A forward-thinking business law firm, Greenebaum is committed to the practice of Breakthrough Law®. For more information, visit www.greenebaum.com.

Copyright 2008 Greenebaum Doll & McDonald PLLC. All Rights Reserved.

RSS RSS Feed

Subscribe

Recent Posts

Categories

Contributors

Archives

Back to Page