Genzyme Royalty Payment Deductions Barred by New York Tribunal

Global biotechnology company Genzyme Corp. is on the hook for another $200,000 in corporate franchise taxes because it improperly deducted royalty payments from related entities, a New York tribunal judge ruled.

Genzyme, which was later bought by Sanofi, sought a refund of $5 million in franchise taxes it paid from 2004 to 2010. Genzyme argued royalty income could be deducted from its federal taxable income in computing its entire net income.

New York Division of Tax Appeals Administrative Law Judge Winifred M. Maloney disagreed in an opinion posted Thursday.

Genzyme received royalty payments from related entities ...