Thursday, May 08, 2014
Wethekam was recently quoted in Bloomberg BNA's 2014 Survey
of State Tax Departments. Her comments appear in the section
of the survey devoted to addressing the nexus treatment of non-U.S.
Marilyn, a partner with Horwood
Marcus and Berk's SALT
Practice told Bloomberg BNA:
The permanent establishment concept is truly a federal concept
which may or may not be accepted by individual states.
''Whether a state adopts it or not, I think it is correct that
prior to imposing an income tax a state taxing authority must
establish it has jurisdiction, or nexus, over the entity.''
But the analysis does not end with merely establishing nexus
over the foreign entity, Wethekam said. ''I think there is a second
part to that jurisdictional analysis, namely is there a connection
between the taxing authority and the business activity generating
the income it is seeking to tax. The recent U.S. Supreme Court
decisions addressing the application of the Due Process Clause, in
my opinion, support that conclusion.''
To see more of Marilyn's quotes, please click
Bloomberg BNA's 2014 Survey of State Tax Departments is
now available for purchase.
Now in its 14th year, this annual survey clarifies each state's
position on the gray areas of corporate income tax and sales and
use tax administration, with an emphasis on nexus policies. New
portions of the survey this year address sales tax nexus for cloud
computing and services.
Topics covered in the 2014 Survey of State Tax
- Corporate Income Tax Nexus
- Sales Tax Nexus
- Cloud Computing and Services
- State Tax Add-Backs
- I.R.C. §338(h)(10) Elections
- Bankruptcy Issues
- Intangible Holding Companies
- Non-U.S. Entities
- Throwback/Throwout Rules
- Income Tax Sourcing
- Sales Tax Sourcing
- Multistate Tax Compact Conformity and Combined Reporting