SALT & Pepper

  • Hold the Vodafone: The Tennessee Supreme Court Ruled What?

    In a disappointing decision released yesterday, the Tennessee Supreme Court upheld the intermediate appellate court in Vodafone Holdings v. Roberts. In that case, the Supreme Court allowed the Department of Revenue to utilize alternative apportionment where "nearly all of the taxpayer's sales receipts for services to its Tennessee customers... would not be subject to Tennessee franchise and excise taxes." Notwithstanding the legislature's determination to utilize an income producing activity test, the court concluded that this approach did not reasonably reflect the taxpayer's business activities in Tennessee, and that the reasonable alternative would be to look at the taxpayer's market. Unfortunately, such a ruling grants the Department the authority to deviate from the statutory formula where convenient, notwithstanding the legislature's clear intent to focus on where income producing activity occurs as opposed to where it is received. That is, a service will always be performed in one location and received in another; a state should not be able to change its manner of measurement of tax based on which measurement results in a greater activity in the state.
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  • February 2016 Tax Credits & Incentives Update

    This post continues a monthly series outlining updates in state tax credits and incentives; included here are legislative, gubernatorial and case law updates. While tax credits and incentives have their fair share of critics, they are a reality in today's competitive business environment in which states compete with each other for jobs and investment. Regardless of the criticisms, state tax credits and incentives benefit many kinds of entities in a number of different ways.
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  • How Foreign Countries Are Making Judgment Enforcement More Accepted

    Enforcement of judgments from commercial disputes has not been as easy as litigants have expected. However, what has transpired in Singapore and Dubai gives litigants greater comfort that enforcement will be better accepted.
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About HMB Law

Welcome to HMB's SALT & Pepper blog. As the title suggests, this blog tracks important and emerging issues, trends and developments that affect our clients not only in State and Local Tax (SALT) but also in other disciplines and industries. This blog is designed to be a helpful resource. We hope our readers will find it practical, insightful and valuable.


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