Department

School of Accountancy

Document Type

Article

Publication Date

10-2003

Abstract

Laws can vary significantly in taxing multijurisdictional companies depending on a company's degree of corporate presence in the taxing state, the type and source of income earned, and the type of property used or held in the state. Several critical factors can determine a company's tax liability in a state, including the location of the company's commercial domicile. The US Supreme Court's decision in the Wheeling Steel case regarding commercial domicile is overriding in federal, as well as state courts. Accordingly, multistate companies and their tax advisors should consider the location of central management activities when planning to start or expand a business. Other factors contributing to the determination of commercial domicile also should be reviewed in considering locations for production, administration, and sales functions, in order to minimize the overall tax burden.

Journal

Journal of Multistate Taxation and Incentives

Journal ISSN

1533-3124

Volume

13

Issue

7

First Page

6

Last Page

13

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