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Navigating Pennsylvania’s Tax Appeals Process -- Updated

Pennsylvania’s tax appeal system has long been criticized as very complicated, expensive and lacking impartiality. A few years ago, the PA Chamber and other interested groups were able to work with the General Assembly to...more

California Court Finds Securitization Entities Subject to California Income Tax

A California Superior Court has issued a decision with significant impact on financial services. In the case, Harley-Davidson, Inc. v. Franchise Tax Board, San Diego Superior Court Judge Joel Pressman held that...more

Corporate Suspension Blocks Tax Court Access

Most states will suspend or involuntarily dissolve a corporation if it does not pay local taxes or fees. Such suspensions and dissolutions can typically be reversed after the corporation files to be restored and pays any back...more

Illinois Tax Developments - A Reed Smith Quarterly Update (1st Quarter 2013)

Welcome to the first of a new series of quarterly updates from Reed Smith on state tax developments in Illinois. Every three months we will be giving you updates on the key cases and administrative releases, as well as...more

Taxpayer Challenges Validity of IRS Transfer Pricing Regulation

In a petition recently filed in the U.S. Tax Court, a taxpayer has challenged the Internal Revenue Service (IRS) regulation that provides that the IRS can reallocate income between affiliates even when foreign law prohibits...more

Tax Court Of Canada Appeal Of Large Corporation Thwarted By Wording Of Objection

Since 1995, the Large Corporation Rules found in subsections 165(1.11), 169(2.1) and 152(4.4) of the Income Tax Act (Canada) have applied to discourage large corporations from objecting to tax assessments as a means of...more

Cyprus: The Day After - The sun will still shine bright

Introduction - Cyprus has been in the spotlight recently due to the negotiations with what has become known as the troika (the International Monetary Fund, the European Central Bank and the European Commission)...more

April 2013: London Litigation Update

Piercing the Corporate Veil: VTB Capital plc v. Nutritek International Corp and Others [2013] UKSC 5 - In a recent case, the United Kingdom Supreme Court unanimously refused to pierce the corporate veil in order to treat an...more

Weekly Law Resume - March 8, 2013: Appeals: Revival of Corporate Powers Retroactively Validates Notice of Appeal

Danielle Bourhis et al. v. John Lord et al. Supreme Court of California (March 4, 2013) Under the Revenue and Tax Code, a suspended corporation forfeits its corporate powers, rights and privileges by failing to pay...more

FTB Announces Temporary Reprieve on Retroactive Assessment of Qualified Small Business Stock Taxes

On January 8, 2013, we published a newsletter (a copy of which can be found here) detailing the Franchise Tax Board's ("FTB") questionable legal and policy decision to begin collecting on a retroactive basis approximately...more

Like Elmer Gantry, Supreme Court Breathes New Life Into Revivals

The state, of course, likes to see corporations pay their taxes. When a corporation fails to do so, “the corporate powers, rights and privileges of a domestic taxpayer may be suspended, and the exercise of the corporate...more

Defending Section 162(m) Executive Compensation Derivative Suits in the United States

Decisions regarding executive compensation fall squarely within the discretion of a public company’s board of directors. Recently, however, plaintiffs’ firms have been trying to invade the board’s purview by bringing...more

R (on the application of Prudential plc and another) v Special Commissioner of Income Tax

Privilege – Lawyers Only

The Supreme Court has given judgment in a long awaited case on whether or not legal advice given by accountants is privileged. The case is R (on the application of Prudential plc and another) (Appellants) v Special...more

Tax Alert: FTB Disallows California Qualified Small Business Stock Benefits

The California Franchise Tax Board (FTB) recently issued FTB Notice 2012-03, stating that the FTB will disallow the exclusion or deferral of gain under California's qualified small business stock (QSBS) statute for all tax...more

Delaware Supreme Court Affirms Denial of Attorneys' Fees Relating to Corporate Waste Claim Based on a Board's Decision to Forego...

On January 14, 2013, the Delaware Supreme Court affirmed a trial court's denial of attorneys' fees in connection with a corporate waste claim filed against corporate board members for the board's decision to pay certain...more

Death and Taxes? Recent Supreme Court Arguments in Gabelli v. SEC Concerning a General Statute of Limitations for Civil Fines May...

On January 8, the Supreme Court of the United States heard oral arguments in Gabelli v. S.E.C., 133 S. Ct. 97 (2012) on the question: By when must the government initiate an action to enforce a civil fine, penalty, or...more

Duff v. Innovative Discovery LLC, C.A. No. 7599-VCP (Del. Ch. Dec. 7, 2012) (Parsons, V.C.)

In this memorandum opinion, the Delaware Court of Chancery denied motions to dismiss for lack of subject matter jurisdiction, failure to state a claim upon which relief could be granted, and improper venue. ...more

Federal Court of Appeal dismisses taxpayer’s appeal in Morguard: Trial judge made no error in concluding that a “break fee” was...

The Federal Court of Appeal has dismissed the taxpayer’s appeal in Morguard Corporation v The Queen. Justice Sharlow wrote for the panel which also included Justice Evans and Justice Stratas. She agreed with the...more

Federal Court of Appeal hears argument on whether “break fees” are income (Morguard)

Is a “break fee” received in return for withdrawing from a takeover bid a capital receipt or an income receipt? That was the issue before a panel of the Federal Court of Appeal (“FCA”) on November 20, 2012 in Morguard...more

Federal Court of Appeal to hear argument tomorrow in “break fee” case (Morguard)

Tomorrow morning (November 20, 2012), the Federal Court of Appeal is scheduled to hear an appeal by Morguard Corporation (“Morguard”, formerly operating as Acktion Corporation), regarding the taxation of a “break fee”...more

Supreme Court of Canada Considers Two Quebec Rectification Cases

In what circumstances may the Superior Court of Quebec correct a written instrument that does not reflect the parties’ intent? That is the question that was considered by the Supreme Court of Canada on November 8, 2012 on...more

MoFo New York Tax Insights - Volume 3, Issue 11 - November 2012

In This Issue: Appellate Court Holds “Reconstitution” of Housing Cooperative Is Not Subject to City Transfer Tax; Trial Court Upholds Retroactive Application of 2010 Statutory Amendment; Tribunal Holds S Corporation...more

Statute Of Limitations Quiz

Facts & Law: A. Income taxes must be assessed within 3 years of the later of the date the return is filed or the due date of the return. B. However, the assessment period remains open indefinitely “in the...more

State and Local Tax Insights -- Summer 2012

In This Issue: To Be Or Not To Be: Nonbusiness Income; Upcoming 2012 Speaking Engagements; The Unitary Business Principle Applies to More Than Corporate Net Income Taxes: Reynolds Metals Company v. Department of...more

Do members of an advisory board hold an “office” for purposes of Canadian tax law?

On April 26, 2012, Justice J.E. Hershfield of the Tax Court of Canada heard arguments in Nuclear Waste Management Organization v. The Queen in respect of a reassessment under the Canada Pension Plan (the “Plan”). In written...more