Close
Close

New York State Tax Appeals Tribunal finds substantial intercorporate transactions, allows corporation franchise tax combined filing

In a precedential decision, the New York State Tax Appeals Tribunal has determined that a group of taxpayers was allowed to file a combined New York corporation franchise tax return because it met the substantial intercorporate transactions test for combination. The Tribunal also acknowledged that combined reports may be permitted based on a showing that separate reporting results in distortion, even in the absence of substantial intercorporate transactions. The ruling overturned an Administrative Law Judge determination which found that the taxpayers could not file a combined report. The New York Division of Taxation is not permitted to appeal the Tribunal’s decision.

Download the PDF.