In a May 29 column published in the Triad, Triangle and Charlotte editions of The Business Journal, Elon University School of Law professor Andrew Haile examines a recent decision of the North Carolina Court of Appeals that "introduced further uncertainty into North Carolina's already complicated corporate tax system."
Haile writes that the case “involved a complex scheme by Wal-Mart to reduce its state tax burden,” and that Wal-Mart’s actions “had no business purpose other than to avoid state taxes.”
Commenting on the Court’s decision, Haile writes, “While the decision [ruling against Wal-Mart] reached the right result, it did so for the wrong reasons.”
Pointing to the implications of the decision, Haile writes, “North Carolina has made considerable efforts to make the state a more attractive home for businesses. These efforts include the creation of the North Carolina Business Court, which has issued consistent and well-reasoned opinions, as well as a current bill in the General Assembly to reduce the corporate tax rate. But business seeks certainty. The uncertainty created by the Court’s decision in the Wal-Mart case undermines the efforts to attract and retain businesses in North Carolina.”
To read the complete column, click on the E-Cast link to the right of this article.