Corporation’s Foreign-Source Income Not Subject to State Tax, New Jersey Tax Court Says

Alysse McLoughlin praised the New Jersey Tax Court’s Infosys Ltd. of India Inc. v. Division of Taxation decision. “This decision gives taxpayers more clarity and comfort,” Ms. McLoughlin said, because it relied on foreign treaty protections for calculating New Jersey tax on worldwide business income. “Here the court acknowledged that based on the language, you would get treaty protection,” she said.