EIDP Owes Minnesota $11 Million in Franchise Taxes (Correct)

E.I. du Pont de Nemours & Co. is stuck with a Minnesota franchise tax bill of about $11.5 million after a state judge ruled the chemical company’s calculations didn’t accurately reflect the value of its foreign currency transactions.

The state revenue commissioner proved the state’s general apportionment method distorts the company’s taxable net income allocable to Minnesota for tax years 2013-15, Tax Court Judge Wendy S. Tien ruled Monday.

Gross income from the company’s actions to manage the risks of fluctuating exchange rates when it’s paid in foreign currency shouldn’t be included in its everywhere sales because those transactions only ...