Massachusetts Capital Gains Ruling Offers Path for Other States
Richard Jones was quoted in the article, "Massachusetts Capital Gains Ruling Offers Path for Other States," published by Bloomberg Law [sub. req.].
The article discusses how a Massachusetts high court ruling addressing whether the state can tax an out-of-state company’s capital gains on the sale of an in-state company could lead other states to adopt its approach. The Massachusetts SJC ultimately barred the state from taxing Florida company VAS Holdings & Investments LLC for the financial benefit it gained from selling its 50% ownership interest in in-state company Cloud5 LLC, in a decision Monday.
"The constitutionality of the concept of investee apportionment is something that the US Supreme Court will need to address. The Massachusetts court made an 'admirable' attempt to reconcile seemingly contradictory Supreme Court cases on the unitary business principle, Rich said.
Rich filed an amicus brief on behalf of the American College of Tax Counsel, which raised the statutory argument that the SJC ultimately relied upon in striking down the tax.