• Termination Fee Deemed Apportionable Business Income by California State Board of Equalization
  • March 19, 2012
  • Law Firm: Mayer Brown LLP - Chicago Office
  • Following roughly six hours of argument and debate, the California State Board of Equalization (the “Board”) ruled 3-2 against Comcast Cablevision Corp. of CA. (“Comcast”) in holding that: (i) a termination fee received by Comcast on account of a failed merger with MediaOne constituted business income; and (ii) Comcast had a unitary business relationship with QVC, Inc. (“QVC”) and hence QVC’s business income and apportionment factors were required to be included in Comcast’s California combined tax return. The Board agreed with Comcast by a 4-1 margin that imposition of an accuracyrelated penalty against Comcast was improper.