|
Note: The following is an excerpt from the introduction to the
article as published in The State and Local Tax Lawyer. Author citations have been
omitted for brevity.
Application of the Transactional Approach or the Functional Approach in Determining Business Income: Polaroid Corp. v. Offerman
Tienne Smith
INTRODUCTION
In Polaroid Corp. v. Offerman, the Supreme Court of North Carolina held that the state’s business income definition, section 105-130.4(a)(1), includes both a functional test as well as a transactional test.
Part I of this note provides background information on section 105-130.4(a)(1) and the Uniform Division of Income for Tax Purposes Act and summarizes the facts of Polaroid. Part II discusses the decision of the Supreme Court of North Carolina. Part III of this Note provides a brief analysis of the case while Part IV examines the business implications of classifying income as “non business in-come” and under what circumstances this might be accomplished.
Back to Contents
Page
BACK TO TEXT
|
