Skip IBM, Disney Cases Over Former Tax Law, NY Tells Justices

The Walt Disney Co.'s and IBM Corp.'s challenges to New York’s “short-lived” approach to taxing foreign royalties don’t warrant review, the state told the US Supreme Court in a pair of briefs filed Monday.

The New York Court of Appeals ruled in April that the companies can’t deduct payments from their foreign affiliates that produce and license intellectual property under a state law add-back provision in effect from 2003 to 2013. The court upheld the New York Department of Taxation and Finance’s interpretation of the statute and held that any burden it created on interstate or foreign commerce was incidental ...