Transfer pricing and its effects on state tax

In this episode of the SALT Shaker Podcast, host and Associate Chris Lee is joined by Associate Justin Brown to discuss transfer pricing and how it affects state tax and in particular how states may use transfer pricing or other theories to make adjustments to sales tax. Recently, some jurisdictions have challenged sales tax on intercompany transactions by arguing that the sales price and amount of gross receipts should be increased. In their discussion, Chris and Justin reference an article by Eversheds Sutherland attorneys Tim Gustafson, Eric Tresh and Liz Cha from Tax Notes State, addressing California's attempt to extend transfer pricing to sales tax.

Questions or comments? Email SALTonline@eversheds-sutherland.com.