California Court of Appeal
General Mills, Inc. v. Franchise Tax Bd., A131477
In a tax refund action by General Mills seeking refunds from California's Franchise Tax Board, the trial court's holding that including overall gross receipts from futures trading in the standard Uniform Division of Income Tax Purposes Act (UDITPA) formula did not fairly represent the extent of the company's business activity in California is affirmed where: 1) the company's hedging activity, while integral to its main consumer food business, is different from the company's other sales and substantially distorts the percentage of its income that is apportioned to California; and 2) the Franchise Tax Board's alternate formula, including only the net gains from the company's future sales, is reasonable and may be imposed consistent with UDITPA.
Appellate Information
- Decided 08/29/2012
- Published 08/29/2012
Judges
- Bruiniers
Court
- California Court of Appeal