Bradley attorney Bruce Ely was quoted in Law360 on the new tax proposals recently discussed by an Alabama legislative task force. Under the proposals, Alabama would fully decouple from the federal treatment of global intangible low-taxed income (GILTI), cut income tax rates, alter the interest deduction limit and adopt single sales factor apportionment
Ely said decoupling from GILTI solves a potential constitutional issue for the state.
Alabama’s current procedure could result in disparate treatment of foreign and domestic subsidiaries of companies that separately report profits of each subsidiary, a disparity that the U.S. Supreme Court has previously ruled violates the Constitution's foreign commerce clause requiring the same treatment of foreign and domestic income.
“I think it's a lawsuit waiting to happen,” Ely said.
The complete article, “Ala. Task Force Floats GILTI Decoupling, Income Tax Cuts,” first appeared in Law360 on December 17, 2019.