Overview
Diann Smith, speaking at a panel that considered state taxation lessons for global tax reform, said that because the states and federal government approach tax jurisdiction differently, a foreign entity might not be a permanent establishment for federal tax purposes but have nexus that subjects it to state corporate income tax. When asked if formulary apportionment could meaningfully take intangible property into account Ms. Smith said it was possible, as when a government might decide patents or trademarks should be sourced where are used or are generating earnings.
