In this episode of the SALTovation podcast, we continue our discussion with Richard Jones, attorney at Sullivan & Worcester, on recent landmark cases and their implications on tax policies and practices. Richard discusses two important state and local tax cases: Akamai and Bass Holdings. We delve into the complexities of determining whether a company is selling software or services, and the taxation implications. We also explore the concept of unitary business and its impact on apportionment. Listen as we provide valuable insights into the nuances of these cases and offer advice on navigating state and local tax issues. Tune in to gain a deeper understanding of these key topics in the world of taxation!

Topics discussed in this episode:

• The pronunciation and role of Akamai in the technology and tax world, exemplify the challenges in classifying software versus services within taxation.
• The significance of the unitary business principle in SALT litigation and its application in recent tax cases, specifically referenced in the 'Vas Holdings' debate.
• An explanation of how court decisions can overturn long-standing tax policies, offering a fresh perspective on statutory interpretations and SALT applications.
• Richard’s experiences in the courtroom, shed light on the strategies used in SALT litigation to secure favorable outcomes.
• The encouragement to question accepted tax policies and insights into the pendulum of taxpayer victories in recent SALT litigation.

Quotables

• “Get a good tax advisor to know the difference between the tax rules that really shouldn't be challenged and those that might have some grounds for looking further into.” -Richard Jones [29:40]

• “The pendulum can change, though, if you get more aggressive positions taken by the Department of Revenue, you tend to have more success from taxpayers as long as there's not too much deference and some fresh looks at by the courts or the judges as to the proper application.” -Richard Jones [32:42]

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