• Maryland Tax Court Conflates Tax Principles; Rules Holding Companies Taxable
  • November 16, 2010
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • On November 9, 2010, the Maryland Tax Court issued another unfavorable decision against a taxpayer and upheld the Maryland Comptroller’s assessment against out-of-state intangible holding companies. In W.L. Gore & Associates, Inc., Gore Enterprise Holdings, Inc., and Future Value, Inc. v. Comptroller of the Treasury, Md. T.C., Dkt. Nos. 07-IN-OO-0084; 07-IN-OO-0085; 07-IN-OO-0086, 11/09/2010, the Maryland Tax Court’s decision managed to conflate the unitary business principle, economic substance, and nexus principles in holding that the Delaware holding companies (DHCs) were subject to Maryland corporate income tax. The holding and its rationale are similar to what is becoming a stream of decisions issued by the Maryland Tax Court addressing intangible holding companies.