AE Outfitters Retail Co.
The Indiana Tax Court granted partial summary judgment against the Department of Revenue in a forced combination case.
GMRI, Inc. (Red Lobster, Olive Garden)
The California State Board of Equalization ruled that the State could not impose sales tax on certain restaurant gratuity checks of parties of eight or more customers (called “large parties”).
The Supreme Judicial Court of Massachusetts held that companies may legally reorganize themselves and, as long as the reorganization has economic substance, it must be respected for tax purposes even if the new structure also provides tax benefits.
ABB C-E Nuclear Power, Inc.
The Missouri Supreme Court ruled that the gain recognized by a corporation from the sale of a subsidiary in an IRC Section 338(h)(10) transaction constituted non-business income for Missouri tax purposes.
Osram Sylvania, Inc.
The Pennsylvania Supreme Court affirmed the decision of the Commonwealth Court and held that the gain from an IRC Section 338(h)(10) election constituted non-business income for Pennsylvania corporate net income tax purposes.
In re Verizon Yellow Pages Company f/k/a Bell Atlantic Yellow Pages Company
The New York Division of Tax Appeals ruled that a company which purchased telephone directories and distributed them to its customers and potential customers was entitled to the sales and use tax exemption provided for promotional materials.