{"id":12886,"date":"2024-01-25T16:56:41","date_gmt":"2024-01-25T16:56:41","guid":{"rendered":"https:\/\/taxops.com\/?p=12886"},"modified":"2024-01-25T17:03:04","modified_gmt":"2024-01-25T17:03:04","slug":"unpacking-vas-holdings-taxability-nexus-and-unitary-business-principle","status":"publish","type":"post","link":"https:\/\/taxops.com\/unpacking-vas-holdings-taxability-nexus-and-unitary-business-principle\/","title":{"rendered":"Unpacking VAS Holdings: Taxability, Nexus, and Unitary Business Principle"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"991\" height=\"555\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones.png\" alt=\"\" class=\"wp-image-12884 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones.png 991w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones-980x549.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones-480x269.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 991px, 100vw\" \/><noscript><img decoding=\"async\" width=\"991\" height=\"555\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones.png\" alt=\"\" class=\"wp-image-12884 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones.png 991w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones-980x549.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones-480x269.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 991px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>The VAS Holdings case offers up a fascinating twist to understanding the unitary business principle and how relationships between entities can influence tax litigation outcomes. <\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/blockquote>\n\n\n\n<h4 class=\"wp-block-heading\">Unitary Business Principle vs.\u00a0Investee Apportionment<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The VAS Holdings case brought a fascinating twist to understanding the unitary business principle, challenging long-standing ideas about what constitutes a sufficient operational connection to a state for tax purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe taxpayer win was because the statute didn\u2019t permit this tax, because the statutes follow the unitary business principle\u2026 But then in about 20 to 30 extra pages it said, but let\u2019s talk about this. And in a well-written discussion, it talked about the constitutional issues.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The court\u2019s decision to not tax a non-resident entity on gains from selling an interest in an LLC operating in-state, despite stipulated non-unitariness, signifies a critical look at the application of the principle versus the stretch of investee apportionment.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Tax Position and Filing Interpretations<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">VAS Holdings further shed light on how tax filings and the perceived relationships between entities can influence outcome in tax litigations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cLooking at the returns on taxability, the operational income wasn\u2019t guidance for the answer in this question\u2026 We\u2019re just selling, I\u2019m a corporation, I\u2019m just selling an investment in an intangible.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The case distinguishes between operational income taxability and the gain from sale of investment interests, which refines the understanding of nexus and points towards the need for sharper separation of the two in both tax policy and practice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"> <em>Listen to the conversation at the <a href=\"https:\/\/saltovation.captivate.fm\/listen\" target=\"_blank\" rel=\"noopener\" title=\"SALTovation Show\">SALTovation Show<\/a><\/em>.<\/p>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Let&#8217;s Talk Tax<\/h3>\n\n\n\n<div style=\"height:73px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Book Time with a TaxOps Advisor<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:73px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">More Tax News<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:73px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The VAS Holdings case offers up a fascinating twist to understanding the unitary business principle and how relationships between entities can influence tax litigation outcomes. Unitary Business Principle vs.\u00a0Investee Apportionment The VAS Holdings case brought a fascinating twist to understanding the unitary business principle, challenging long-standing ideas about what constitutes a sufficient operational connection to [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12884,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[229,226],"tags":[252,388,284,994,1050,126,796,471,1090,36,44,1053,18,19,1051,1081,30,101,601,38,214,1091,168,139],"class_list":["post-12886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state-and-local","category-tax-news","tag-accountant","tag-accounting-professionals","tag-cfo","tag-controller","tag-cp","tag-cpa","tag-exemption-certificates","tag-finance-professionals","tag-financial-savings","tag-income-tax","tag-property-tax","tag-risk-reduction","tag-sales-and-use-tax","tag-sales-tax","tag-sales-tax-exemptions","tag-sales-tax-management","tag-state-and-local-tax","tag-state-tax","tag-tax-administrations","tag-tax-compliance","tag-taxability","tag-taxation-tips","tag-use-tax","tag-voluntary-disclosure"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2024\/01\/SALTovation-Show-with-Richard-Jones.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=12886"}],"version-history":[{"count":5,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12886\/revisions"}],"predecessor-version":[{"id":12894,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12886\/revisions\/12894"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/12884"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=12886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=12886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=12886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}