Overview
Alysse McLoughlin said that a New York Tax Appeals Tribunal decision preserving distortion-based combined reporting provided much needed guidance for combination under the post-2007 combination regime. The decision showed that tax authorities must bring more detailed arguments to justify decombination when companies have significant intermingling of funds, Ms. McLoughlin said, adding that simply asserting a parent pays a subsidiary’s expenses with the subsidiary’s funds without evidence of separate tracking will no longer support decombination.