How do you respond to multi-state corporations assertions that “combined reporting” is unworkable and has caused lots of litigation over definition of “unitary business”?
A. There has been considerable litigation over what constitutes a “unitary” business because such litigation is about the only course available to businesses to protect their tax avoidance schemes. Now that the Multistate Tax Commission has prepared a model statute and clear, enforceable definitions and regulations, such litigation should become less common. In any case, there has been no more litigation about unitary businesses than about laws specifically targeting only “PICs” or other “tax planning strategies”.
