Supreme Court Skips IBM, Disney Cases Over Former NY Tax Law (1)

Walt Disney Co. and IBM Corp. failed to convince the US Supreme Court Tuesday to take up their claims that they were improperly double-taxed on royalty payments from their foreign affiliates.

The New York Court of Appeals ruled in 2024 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 and constitutional.

Under ...