Tax News

CCH (cch.taxgroup.com) reports:

  A multistate corporation correctly apportioned interest expense deductions on its 1993 and 1994 Alabama corporate income tax returns using the gross income ratio formula. The specific language of the statute setting forth the gross income ratio formula for out-of-state corporations was valid and in effect for the tax years at issue and prevailed over the more general language of the regulations, which directed an out-of-state corporation to apportion its deductions to Alabama using the standard three-factor formula. The provisions of a statute will prevail in any case of a conflict between a statute and an agency regulation, and the Department of Revenue is not authorized to subvert a statute.

Alabama Department of Revenue v. Jim Beam Brands Co., Inc., Alabama Court of Civil Appeals, No. 2070768, December 19, 2008, ¶201-352

  Other References:

  Explanations at ¶11-520