Equifax appeals tax ruling to U.S. Supreme Court
Published: June 17,2014
Tags: bench, Council on State Taxation, court, Department of Revenue, Equifax, Equifax Inc., Georgia Chambner of Commerce, justice, law, legal, Mississippi Legislature, Phil Bryant, state government, State of Mississippi, tax, The Institute for Professionals
WASHINGTON — The U.S. Supreme Court will consider June 26 whether to hear an appeal from credit bureau Equifax Inc. from what is considers an adverse tax ruling in Mississippi.
Court officials say a decision could be announced shortly after the court conference.
The appeal is a reaction to a 2013 Mississippi Supreme Court decision that Equifax had to prove that it didn’t earn any taxable income in the state. The state Department of Revenue examined Equifax’s income and allocated some to Mississippi, ruling it owed taxes and penalties.
The Mississippi court upheld the Revenue Department’s applying a market-based tax apportionment method to determine the tax bill of Equifax. The market-based method calculated the company’s taxes based on revenue earned in Mississippi, thus increasing its tax liability from zero to over $700,000, according to court documents.
The Council on State Taxation, Georgia Chamber of Commerce and The Institute for Professionals have filed “friend of the court” briefs.
Lawmakers responded during the 2014 session to change how Mississippi state government collects taxes. Gov. Phil Bryant signed the bill in April.
A key part of the law could make it harder for the state to rule that multistate corporations are paying too little in taxes to Mississippi. It says the Department of Revenue would have to present clear and convincing proof before it could reallocate how a company splits its income among states, and only do so in “limited and unique, nonrecurring circumstances.”
The Department of Revenue estimates all changes in the law, including a phase-in of lower interest rates for overdue taxes, will cost Mississippi $100 million a year.
The law also makes it easier for taxpayers to appeal Revenue Department rulings.
The Mississippi business community lobbied hard for the law.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Bids on reworking Interstate 55 stretch are rejected
- Spivey named Under 40 Business Person of the Year by the Mississippi Business Journal
- JACK WEATHERLY: Economic development in these parts is a ‘family’ business
- Hosemann to launch crowd funding program
- CFPB wants repay ability at center of new payday loan rules
- Terminal upgrade on indefinite hold at Jackson International Airport
- ALAN TURNER: Education in Mississippi – good and bad news
- JOSH MABUS: The Tao of Road House
- Answering the Bell: Interim Ole Miss law school dean well-regarded for directing hands-on clinical training