Packaging Maker Gets Alabama Taxable Income Reduced by Tribunal

Consumer packaging product manufacturer Huhtamaki Inc. convinced the Alabama Tax Tribunal Monday that it owes the state less business income tax than assessed for four tax years.

Millions of dollars of interest and royalty payments Huhtamaki made to its direct parent company and which were then paid to foreign affiliates don’t have to be included in Huhtamaki’s Alabama taxable income, Judge Jeff Patterson ruled.

Alabama’s add-back statute requires a corporation to add back to its state income interest expenses deducted from its federal income. The subject-to-tax exception allows the company to avoid adding the income back if it can ...