On Thursday, December 31, 2015, the Supreme Court of California issued its decision in Gillette Co. v. Franchise Tax Board, reversing the California Court of Appeal and holding that the Multistate Tax Compact is not a binding compact between its member states. Accordingly, the California legislature had the authority to, and did in fact, replace the state’s equally weighted apportionment formula with a double-weighted-sales formula in 1993. This highly anticipated decision by the California high court will undoubtedly have a significant impact on the landscape of ongoing disputes among taxpayers [...]Read more
This advisory reviews the Multistate Tax Commission’s efforts to create an Arm’s-Length Adjustment Service program to streamline states’ ability to effectively evaluate multistate transfer-pricing issues.
This advisory is provided on the Alston & Bird website: http://www.alston.com/advisories/MTC-transfer-pricing/