Trevor Mauck, Kent Strader, David Simon-Fajardo, Author at SALT Savvy

California Continues to Challenge Economic Substance and Business Purpose

October 8, 2024 By Trevor Mauck, Kent Strader and David Simon-Fajardo 3 Mins Read

In Matter of Gatewood Corp, OTA Case No. 19105425 (July 3, 2024), the California Office of Tax Appeals (“OTA”) concluded that Gatewood Corporation’s (“Gatewood”) transfer of stock did not entitle it to a $10 million deduction because the transaction lacked economic substance and was for the purpose of tax avoidance, resulting in $831,398 additional tax. The California Franchise Tax Board (“FTB”) conceded a $332,559 non-economic substance transaction (“NEST”) penalty that it had originally imposed. In…

Plot Twist: New York Legislation Would Give the Commissioner of Taxation and Finance Appeal Rights Following Certain Adverse Tribunal Decisions

May 3, 2023 By Maria Eberle, Lindsay LaCava, Mark Yopp, Trevor Mauck, Michael Tedesco and Dmitrii Gabrielov 4 Mins Read

As part of the New York Budget Legislation (“S.B. 4009 / A.B. 3009”), the Commissioner of the New York State Department of Taxation and Finance (“Commissioner”) will be given the right to appeal certain types of decisions from the New York State Tax Appeals Tribunal (“Tribunal”). Currently, only taxpayers have the right to appeal Tribunal decisions. This provision is on the cusp of becoming law after clearing both legislative chambers on May 1, 2023. As…

California Taxpayers Must Report Unclaimed Property Filing History

March 2, 2022 By Ted Bots and Trevor Mauck 2 Mins Read

Beginning for tax year 2021, California will require businesses that file certain California tax returns to report their California unclaimed property filing history. Specifically, most 2021 California business tax returns filed with the Franchise Tax Board (e.g., Forms 100, 565, and 568) have been updated to ask whether the entity has previously filed an unclaimed property Holder Remit Report with the State Controller’s Office, and if so, the date of the last report and the…

“Primary Function” Test Limits the Scope of Information Services for New York Sales Tax Purposes

January 3, 2022 By Trevor Mauck 2 Mins Read

In Matter of LendingTree Inc., DTA No. 829714 (N.Y. Div. Tax App. ALJ Div. Dec. 9, 2021), a New York administrative law judge (“ALJ”) found that the matching of prospective borrowers with lenders was not a taxable information service. While certain components of the matching process may constitute taxable information services, the ALJ found that the “primary function” of the matching process was not a taxable information service. In New York, information services are…