An Indiana Department of Revenue letter of findings recently held that the Department’s auditor wrongly rejected an Indiana clothing retailer’s transfer pricing study to support intercompany charges. Accordingly, the LOF concluded that the retailer was not required to reapportion its gross operating margin between itself and an affiliated purchasing entity to more fairly reflect its Indiana source income for state adjusted gross income tax purposes. Read more here.
This article was submitted by Ben Blair, Faegre Baker Daniels LLP.
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