Idaho State Tax Commission

Tax Commission appeals state court decision to SCOTUS

The Idaho State Tax Commission has petitioned the U.S. Supreme Court to overturn a recent state court decision. The agency appealed because it believes the decision could allow businesses to use shell companies to avoid taxes.

The Tax Commission’s petition argues that the Idaho Supreme Court failed to consider precedent when it issued a ruling last year for Noell Industries Inc. Citing the U.S. Supreme Court’s decision in a Vermont case, the Tax Commission argues that superficial factors such as corporate structure shouldn’t determine whether a state can tax a business. It contends that Idaho may tax Noell Industries because it’s part of the same “unitary business” as its Idaho subsidiary.

The U.S. Supreme Court is open to receiving briefs from those interested in this case until February 16.  After that date, the Supreme Court will begin its review of this question. 

Posted 01-26-2021
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