Ind. Dep’t of Revenue v. UPS

In this case the Supreme Court examined whether income received by a corporation's affiliated foreign reinsurance companies falls within the ambit of Indiana's gross premium privilege tax statute and is on that basis exempt from Indiana adjusted gross income tax. The corporation in this case was UPS, which protested the Indiana Department of Revenue's audit, which disallowed the exclusion from Indiana adjusted gross income the income of UPS's affiliates. The Indiana tax court granted UPS's motion for summary judgment, reasoning that because UPS was "subject to" the premium tax, it was exempt from the adjusted gross income tax. The Supreme Court reversed, holding that because the record did not establish that during the years in question UPS's affiliates were doing business within the state of Indiana, which was a necessary condition in order to be "subject to" the premium tax, UPS failed in its burden of establishing that it was entitled to summary judgment as a matter of law. Remanded. View "Ind. Dep't of Revenue v. UPS" on Justia Law