"Landmark Ruling by South Carolina Supreme Court to Impact Taxpayers Nationwide"

On June 18th, 2010, MidlandsBiz reported on a South Carolina Supreme Court ruling that could have "a significant impact on taxpayers in many states." 

The article is entitled "Landmark Ruling by South Carolina Supreme Court to Impact Taxpayers Nationwide; Ruling Reverses Corporate Tax Reporting Policy - Addresses Need for Fair Tax Relief."

The state Supreme Court ruled in favor of Media General, in a dispute involving more than $2 million in state income taxes.  Nexsen Pruet attorney Burnie Maybank represented the company before the Court.  

According to the MidlandsBiz:

"The decision recognizes that statutes providing for relief from such a distortive result had no 'explicit limitation' on the method that could be utilized to fairly reflect a taxpayer's business activities.  The ruling overturns longstanding policy of the South Carolina Department of Revenue to not allow the combination of separate entities (i.e., corporations) in computing tax liabilities."

Read the S.C. Supreme Court opinion here.

Burnie Maybank is a member of Nexsen Pruet's tax, financial services and economic development practice groups.  He was Director of the South Carolina Department of Revenue from 1995 to 1999 and 2003 to 2005.