KPMG reports - Massachusetts (reverse nexus); Missouri (sales and use tax); Puerto Rico (tax amnesty) 

June 4: KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments and features a series of short podcasts presented by KPMG tax professionals. Text of the podcasts is also available.

Today’s edition, for June 3, 2013, includes the following topics (listen to the podcasts; to read text, click on the links below).

  • Massachusetts: The Massachusetts Appellate Tax Board concluded that a Canadian-based parent company’s attempts to establish nexus in Massachusetts (i.e., by transferring employees from certain Massachusetts subsidiaries to its payroll and leasing of office space at an affiliate's Massachusetts location to house these new employees) were simply to allow significant losses to be used by the combined group and were to be disregarded because these attempts were simply to establish nexus for the sole purpose of tax avoidance.
  • Missouri: The Missouri Administrative Hearing Commission determined that a taxpayer’s purchases of food and non-food items, delivered to a related entity in St. Louis for use by the taxpayer on its towboats in inland waterways (including the Mississippi River) are subject to sales or use tax.
  • Puerto Rico: Puerto Rico provides a tax amnesty program for a variety of tax liabilities—including income tax, estate and gift tax, excise tax, sales and use tax, and withholding of income tax at source—through June 30, 2013.

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