New York Supreme Court Upholds Franchise Tax Assessment Due to Nonresident Affiliate Group Members

The New York Supreme Court, Appellate Division affirmed the Tax Appeals Tribunal’s determination against the taxpayer, upholding a franchise tax assessment. The taxpayer, a combined group of companies, provided video and data services in New York. The taxpayer filed a combined franchise tax return for tax years 2012-2014, claiming a reduced tax rate as a “qualified emerging technology company”. The Department of Taxation determined that the taxpayer didn’t qualify as an emerging technology company because certain members in the combined group were not located in New York during the years at issue. The taxpayer appeal, Upon review, the Supreme Court ...