On June 2, 2015, the Tennessee Supreme Court heard oral argument in Vodafone’s appeal from an assertion of alternative apportionment by the Tennessee Department of Revenue in Vodafone, in which the Tennessee DOR asserted that the state’s statutorily-mandated costs-of-performance (COP) sourcing method unfairly under-represented the out-of-state service provider’s Tennessee receipts. On Sept. 3, 2015, a Virginia circuit court heard oral argument in a case in which the Virginia-based taxpayer argued that the state’s statutory COP method unfairly over-represented the taxpayer’s Virginia receipts.
In this article originally published in the February issue of the IPT Insider, Mary Benton and Clark Calhoun discuss both cases and contend that, using the Virginia Department of Taxation’s reasoning in CEB, the Tennessee Supreme Court must find for the taxpayer in Vodafone.
To read the full article, click here.
