State and Local Tax (SALT) attorney Bruce Ely was quoted in the Birmingham Business Journal regarding a bill that would require many of Alabama’s midsize and large companies to file combined income tax reports. Rather than being able to file separate returns for subsidiaries, companies would now face increased administrative burden and added costs, which could increase audits and litigation and jeopardize efforts to attract new business to the state.
“We’ve seen this bill several times before. Thankfully, the business community and the economic developers always unite to convince the legislature that it’s a terrible tax policy and a major tax increase. No other state in the Southeast requires unitary combined reporting, which would really harm our ability to recruit new businesses and convince our existing businesses to expand in our state,” said Ely.
The complete article, “8 things to watch in the state house,” appeared in the BBJ on February 19, 2016. (login required)