The Most Important Opinions of 2022

Massachusetts Lawyers Weekly
January 16, 2023

Massachusetts Lawyer's Weekly has published "The Most Important Opinions in 2022" [sub. req.d], which contains summaries of hundreds of the most notable opinions that were published in Massachusetts Lawyers Weekly in 2022.

The two opinions noted in the Taxation category were handled by Sullivan lawyers Richard Jones and Caroline Kupiec.

Capital gains - VAS Holdings & Investments LLC v. Commissioner of Revenue (Lawyers Weekly No. 10­057-22) (36 pages)
The commissioner of revenue lacked the requisite statutory authority to deviate from the unitary business principle in imposing a tax on the capital gain that a nondomiciliary corporation reaped from the sale of its 50 percent membership interest in an in-state limited liability company. (Supreme Judicial Court)

Basing its decision on issues first raised in an amicus brief drafted and filed by Sullivan attorneys on behalf of the American College of Tax Counsel, the SJC wrote “we conclude that the commissioner lacked the requisite statutory authority and reverse the decision of the board.”

Manufacturing corporation - Akamai Technologies, Inc. v. Commissioner of Revenue (Lawyers Weekly No. 20-025­21) (59 pages)
An appellant qualified as a manufacturing corporation and should have been classified as such because its revenues were derived from the development and sale of standardized computer software within the meaning of G.L.c. 63, §42B, the use of which was by remote access. (Appellate Tax Board) 

The Massachusetts Appellate Tax Board ruled that Sullivan client, Akamai Technologies, manufactures standardized computer software and that "its manufacturing activities were at all time substantial." Therefore, the company was entitled to use single-sales-factor apportionment for corporate excise tax purposes, the board found in its opinion.

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