ARTICLE
8 February 2019

New Jersey Tax Court Rules That Intercompany Payments Are Not Taxes For Purposes Of The State Tax Addback

MF
Morrison & Foerster LLP

Contributor

Known for providing cutting-edge legal advice on matters that are redefining industries, Morrison & Foerster has 17 offices located in the United States, Asia, and Europe. Our clients include Fortune 100 companies, leading tech and life sciences companies, and some of the largest financial institutions. We also represent investment funds and startups.
The Tax Court of New Jersey released its state tax addback decision in Daimler Investments US Corporation v. Director, Division of Taxation on January 31, 2019.
United States Tax

The Tax Court of New Jersey released its state tax addback decision in Daimler Investments US Corporation v. Director, Division of Taxation on January 31, 2019. The Tax Court agreed with our assertion that amounts Daimler Investments US paid to an affiliate pursuant to a tax sharing agreement are not taxes. The Court also ruled that such amounts are not an indirect payment of tax, disagreeing with the Division of Taxation's position.

Read a copy of the decision.

Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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