Supreme Court of California

In the context of the Uniform Division of Income for Tax Purposes Act (UDITPA), the court finds that: 1) the redemption of marketable securities at maturity generates "gross receipts" that are includable in the formula used to calculate a multistate entity's tax; but 2) the Franchise Tax Board met its burden of establishing that, in this instance, an alternate formula should be used to calculate Microsoft Corporation's tax.

Appellate Information

• Decided 08/17/2006
• Published 08/17/2006

Judges

• WERDEGAR, J.

Court

• Supreme Court of California

Counsel

• For Appellees:
  
• Bill Lockyer, Attorney General, Randall P. Borcherding and Julian O. Standen, Deputy Attorneys General, for Defendant and Appellant., Frank Katz and Shirley Sicilian for Multistate Tax Commission as Amicus Curiae on behalf of Defendant and Appellant., Michael P. Boyle, Michael J. Bernard, Kurt A. Lamp;  Baker & McKenzie, J. Pat Powers;  Preston Gates & Ellis, Reed Smith, James P. Kleier, San Francisco, Brian W. Toman, Charles R. Zubryzcki and John R. Messenger, for Plaintiff and Respondent., Ajalat, Polley & Ayoob, Charles R. Ajalat and Christopher J. Matarese for General Motors Corporation as Amicus Curiae on behalf of Plaintiff and Respondent.