VAS Holdings and the Battle Over Taxing Non-Unitary Capital Gains

Bloomberg Tax recently published an article by Dinsmore business and tax partner Kelvin Lawrence and Jaye A. Calhoun and Bruce P. Ely of the American College of Tax Counsel. They explored the following topic:

Can Massachusetts tax 100% of an out-of-state company's gain from its sale of a subsidiary business? In VAS Holdings, the Massachusetts Supreme Judicial Court considers a taxpayer's challenge to the Massachusetts Department of Revenue's claims that it can tax the entire capital gain from an out-of-state company's sale of its interest in an LLC doing business in the Commonwealth, solely on the basis of the Commonwealth's connections with the LLC.

Lawrence and his coauthors summarize the issues in VAS Holdings and consider the important constitutional and tax policy issues at stake. Download a PDF of the article by clicking the button above.