Close
Close

New York State Tax Appeals Tribunal sustains corporation franchise tax combined filing based on unitary business and soft distortion

On April 16, in a precedential decision, the New York State Tax Appeals Tribunal affirmed an Administrative Law Judge’s determination that a group of corporations properly filed New York State franchise tax returns on a combined basis. The Tribunal found that the group of corporations met the capital stock, unitary business and distortion requirements of New York’s permissive combination statute and regulations in effect during the periods at issue. The Tribunal denied the attempt by the New York State Department of Taxation and Finance to force the group of corporations to file franchise tax returns on a separate basis, and canceled the notices of deficiency issued by the Department. The Department is not permitted to appeal the Tribunal’s decision.

Download the PDF.