Tax - Multi-jurisdictional Tax

Question 1

Restricts a state’s authority to tax interstate commerce

Answer 1

Multi-Jurisdictional Tax

Question 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 state

Applies to tangible property only

Does not protect a Corporation in the state where incorporated

Does not protect from taxes using metrics other than income (Ex: Sales Tax)

Answer 2

Multi-Jurisdictional Tax

Question 3

Uniform criteria for determining taxable income of multi-state corporations

Also known as the Multi-State Tax Compact

Answer 3

Multi-Jurisdictional Tax

Question 4

Designed to ensure a company is not taxed more than once on its income

Forces a corporation to segregate Business Income from Non-Business Income

Answer 4

Multi-Jurisdictional Tax

Question 5

Part of the corporation’s regular course of business

Includes acquisition of tangible and intangible property if such activities are part of the regular trade or business

Answer 5

Multi-Jurisdictional Tax