Multi-Jurisdictional Tax

Front 1

What is the Interstate Income Act of 1959?

Back 1

Restricts a state's authority to tax interstate commerce

Hint 1

Multi-Jurisdictional Tax

Front 2

What are the principles of the Interstate Income Act of 1959?

Back 2

A state can't collect income tax on sales within its borders as long as the orders are filled and shipped outside of the stateApplies to tangible property only Does not protect a Corporation in the state where incorporatedDoes not protect from taxes using metrics other than income (Ex: Sales Tax)

Hint 2

Multi-Jurisdictional Tax

Front 3

What is the Uniform Division of Income for Tax Purposes Act (UDITPA)?

Back 3

Uniform criteria for determining taxable income of multi-state corporationsAlso known as the Multi-State Tax Compact

Hint 3

Multi-Jurisdictional Tax

Front 4

What are the basic principles of UDITPA?

Back 4

Designed to ensure a company is not taxed more than once on its incomeForces a corporation to segregate Business Income from Non-Business Income

Hint 4

Multi-Jurisdictional Tax

Front 5

What is considered Business Income?

Back 5

Part of the corporation's regular course of businessIncludes acquisition of tangible and intangible property if such activities are part of the regular trade or business

Hint 5

Multi-Jurisdictional Tax