EIDP’s Minnesota Tax Ruling Is Blueprint for Apportionment Rules

A recent Minnesota Supreme Court decision upholding EIDP Inc.'s $11.5 million state corporate franchise tax bill adopts a new test for determining how much of a company’s income from hedging activities the state can tax.

The justices last week signed off on the Minnesota Commissioner of Revenue’s use of alternative apportionment to determine how to treat the science and technology company’s foreign currency transactions when deciding what portion of its total 2013-2015 income was subject to the state tax. Neither the justices nor the tax court had previously addressed tax apportionment for such functions of national corporations that do business ...