Robert Half Wins Appeal in California Tax Fight Over VAT

Robert Half International Inc. can lower its California tax bill by including the value-added tax its international clients pay for its services, the Office of Tax Appeals said.

A three-judge panel overturned the California Franchise Tax Board’s administrative decision that the company can’t include $198 million in VAT for the 2008 tax year when calculating its tax bill because it is a tax on services. The agency argued that state law and regulations only allow inclusion of taxes on tangible property, and inclusion of the VAT improperly reduced the amount owed to California by $104,658.

California has an ...