Media Coverage - Oracle USA, Inc. v. Commissioner of Revenue
UPDATE: on May 21, the SJC published its opinion in this case, upholding the Appellate Tax Board's earlier decision for our clients.
At issue in this case was whether taxpayers may apportion sales tax on the sales of software purchased for use in multiple states. The case raised important issues concerning the scope of the Massachusetts Commissioner of Revenue’s authority, including whether he may make substantive tax law or curtail taxpayers’ statutory abatement rights via regulations.
Richard Jones, who argued on February 1, 2021 on behalf of the taxpayers, said "[w]e’re thrilled for our clients that the Supreme Judicial Court agreed with our position that Massachusetts taxpayers have a statutory right to apportion sales tax on software purchased for use in multiple states. The decision further clarifies that taxpayers may establish apportionment through the abatement process. This represents a major win for software vendors and particularly their Massachusetts-based customers."
Caroline Kupiec is also counsel in the case.
Video of the argument can be found here.
Media coverage of the case has been substantial:
- Q2 2021: Top Indirect Tax Disputes (7/14/21) International Tax Review
3 Takeaways From Microsoft and Oracle's Mass. Sales Tax Win, 2021 (6/11/21) Law360 Tax Authority
SJC: Tax Abatement Still Available for Software Used Out of State (5/25/21) Massachusetts Lawyers Weekly
- SJC Sides With Oracle and Microsoft in Dispute With DOR (5/24/21) The Boston Globe
- Massachusetts High Court OKs Sales Tax Apportionment for Software (5/24/21) Tax Notes
- Microsoft Can Apportion Sales Tax, Mass. Top Court Says (5/21/21) Bloomberg Tax
- Microsoft Can Apportion Sales Tax, Mass. Top Court Says (5/21/21) Law360
- Massachusetts Supreme Court Should Uphold Right To Sales Tax Abatement (3/1/21) Tax Notes
- Tax Treatment of Multi-State Use of Software Before the SJC (2/11/21) Massachusetts Lawyers Weekly
- Outline of Oral Argument Presented on Behalf of Oracle USA, Inc. and Microsoft in the Case of Oracle USA, Inc. v. Commissioner of Revenue (2/2/21) Tax Notes
- Rich Jones Argues Before SJC in Support of Taxpayers Oracle USA and Microsoft in Oracle, USA v. Commissioner of Revenue (2/1/21) Oral Argument Archives
- Microsoft Can't Apportion Sales Tax, Mass. Justices Told (2/1/21) Law360