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Insurance Tax

Category

New York lawmakers recently introduced two bills to expand the application of the New York State False Claims Act (“FCA”). The first intends to require the FCA to apply to non-filers, the second to remove the scienter element (i.e., no longer imposing a “knowing” requirement). Although both bills are retroactive and concerning, removing the scienter element should put all businesses on high alert as enforcement of the tax laws could now be in the hands…

The World Health Organization has officially declared the coronavirus outbreak to be a pandemic. In addition to the cost on human life, the rapid spread of COVID-19 has left a trail of economic damage affecting business revenues. COVID-19 has caused complete or partial shutdown of factories, supply chain disruptions, and labor shortages, and has impacted demand in certain industries. This impact will also be felt by U.S. state, and local governments.

The Illinois Department of Revenue has big plans this holiday season to bring different types of unitary businesses that use different apportionment formulas together under a single, combined Illinois corporate income tax return. Like many states, Illinois corporate income taxpayers are generally required to file a unitary combined corporate income tax return.  This combined reporting method aggregates in one tax return the income, deductions and apportionment factors generated by commonly owned corporations operating as a unitary group.

Baker McKenzie’s SALT practice secured a win for Leadville Insurance Company (“Leadville”) in Maryland Tax Court.   The Court ruled in favor of Leadville on its Motion for Summary Judgment and held that the Comptroller’s assessment of Maryland corporate income tax on Leadville was in error. Leadville Insurance Co. v. Comptroller of the Treasury, Case No. 13-IN-OO-0035 (Md. Tax Ct. Mar. 30, 2017).  The Court found that Leadville, a Vermont insurance company with interest income from an affiliate with Maryland operations, was not subject to Maryland corporate income tax.