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Royalties VA Supreme Court

Morrison & Foerster LLP

Virginia Supreme Court Rules on Subject-to-Tax Safe Harbor to the Royalty Addback

In a 4-3 decision, the Virginia Supreme Court held that the subject-to-tax safe harbor to the royalty addback was ambiguous and applies only to the extent that the royalties are actually taxed by another state. In addition,...more

Eversheds Sutherland (US) LLP

Virginia Supreme Court Limits Corporate Income Tax Addback Exception

On August 31, 2017, the Virginia Supreme Court issued its opinion holding that only the portion of royalties that are actually taxed by another state falls within its “subject to tax” exception to Virginia’s addback statute...more

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