Virginia Tax Commissioner Determines Corporation Eligible for Add-Back on Research Expenses

The Virginia Tax Commissioner issued a ruling on a corporation’s income tax appeal. The corporation argued that payments added back by the Department were for research expenses not subject to the add-back, and a portion of the interest expenses were not subject to add-back because it was not related to intangible property. However, the Commissioner determined that the Department’s adjustments to include all royalties paid to an affiliate were correct, the corporation was eligible for the subject-to-tax exception to the add-back, and any interest expenses not related to intangible property were not subject to add-back. [Va. Dep’t of Tax’n, Ruling ...