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Category Archives: Litigation

BNA Daily Tax Report on the Dicon Decision

The following is Laura Mahoney’s article for BNA on the Dicon v. FTB decision. Reproduced with permission from Daily Tax Report, 81 DTR K-1 (Apr. 27, 2012). Copyright 2012 by The Bureau of National Affairs, Inc (800-372-1033) BNA Snapshot Dicon Fiberoptics v. Franchise Tax Board, Cal., No. S173860, 4/26/2012 Key Holding: FTB has authority to […]

Breaking: California Supreme Court Sides With FTB in Dicon Case

In a decision published today, the California Supreme Court has decided that FTB does have the authority to audit “behind the voucher” in determining the legitimacy of tax credit claims. The Court states: For the reasons that follow, we conclude that the FTB may conduct an audit to determine whether a taxpayer is entitled to […]

California Supreme Court to Post Opinion on Dicon v FTB on April 26

The California Supreme Court has announced that they will post an opinion on Dicon Fiberoptics v. FTB tomorrow (Thurs., April 26) at 10:00 am. The case deals with FTB’s power within an audit to override the validity of a hiring credit voucher issued by a local Enterprise Zone.

BNA Daily Tax Report: “Cement Maker Cannot Claim Enterprise Zone Tax Credits for Expensed Machinery Parts”

The following is from Laura Mahoney at the BNA Daily Tax Report on the Taiheiyo Cement case. Reproduced with permission from Daily Tax Report, 50 DTR K-5 (Mar. 15, 2012). Copyright 2012 by The Bureau of National Affairs, Inc. (800-372-1033) SACRAMENTO, Calif.—California’s enterprise zone tax credit is available for machinery parts if they are capitalized, […]

FTB Wins its Case Against Taiheiyo Cement in Court of Appeals

The California State Court of Appeals agreed with the FTB’s narrow interpretation of Enterprise Zone Sales/Use Tax Credit laws when it sided with the FTB against Taiheiyo Cement U.S.A. this week. Taiheiyo had sued the FTB for nearly $5 million in refunds of taxes, interest and penalties paid as well as declaratory relief. Most importantly, […]

Dicon Fiberoptics v. FTB Scheduled for Oral Argument in Supreme Court

A case involving the FTB’s ability to scrutinize the documentation behind Enterprise Zone vouchers has been scheduled on March 6 for argument in the California Supreme Court after a long delay. The following is the summary of the matters at hand from the Court: Dicon Fiberoptics v. Franchise Tax Bd., S173860. (173 Cal.App.4th 1082; Los […]

Enterprise Zone News Roundup

The following are Enterprise Zone related stories that have appeared over the last week or so: CAEZ President Craig Johnson had an Op-Ed published in the Contra Costa Times where he discussed the demise of AB 1278 and said: If legislators want to find a way to improve the state’s economy, attacking the Enterprise Zone […]

FTB “Tax News” July 2009

Here is the June 2009 edition of the FTB’s “Tax News” newsletter. This month’s edition includes an article called, “Enterprise Zone – Nonprofits May be Allowed Net Interest Deduction:” California provides for special tax incentives to encourage investment in specific geographic areas targeted for economic revitalizing called Enterprise Zones within the state. One of these […]

BNA’s Laura Mahoney on the Dicon Case Decision

Reproduced with permission from Daily Tax Report, 88 DTR K-2 (May 11, 2009). Copyright 2009 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com. FTB May Audit EZ Credit Vouchers, But Must Prove Invalidity, Court Says SACRAMENTO, Calif.—The Franchise Tax Board has the authority to question the validity of tax credit vouchers that local government […]

Appeals Court Overturns Dismissal of Dicon Fiberoptics v. FTB

For background on Dicon Fiberoptics v. FTB see these previous blog posts: 5/9/2007 “New Enterprise Zone Lawsuit.” 6/11/2007 “Dicon Fiberoptics v. FTB Update.” 7/17/2007 “Dicon Fiberoptics v. FTB Update 2.” 10/29/2007 “Dicon v. FTB Dismissed.” 11/13/07 “BNA: “Taxpayer Appeals Dismissal of Suit Challenging FTB’s Tax Credit Voucher Policy”.” After the case was dismissed in Superior […]

BOE: EZ Can Reduce AMT

From CalTax.org, the State BOE has ruled that taxpayers may use Enterprise Zone tax credits to reduce Alternative Minimum Tax: Taxpayers can use enterprise zone tax credits to reduce the alternative minimum tax, the State Board of Equalization ruled by a 4-1 vote on the marquee case on the agenda at its February 25-26 meeting […]

AB 1452

AB 1452 is the vehicle for tax code changes in the new budget. Here is the analysis summary of effects on tax credits: 3. Limit business tax credits in 2008-09 and 2009-10: Limits the amounts of business incentive tax credits that can be used to reduce tax liability in 2008-09 and 2009-10. Use of credits […]

DeVry Decision Audio

Here is the audio of the BOE hearing in the case of DeVry we discussed previously: (If you receive the blog via email, click here to the website where you can access the audio player.)

BNA’s Laura Mahoney on the BOE DeVry Decision

On Friday I posted the Cal-Tax update regarding the BOE’s recent Enterprise Zone related decision.  Laura Mahoney at BNA’s “Daily Tax Report”  published a more detailed account of the case yesterday.  Thanks to the folks at BNA for allowing its reproduction here. Reproduced with permission from Daily Tax Report, No. 165 (Aug. 26, 2008), pp. […]

BOE Votes Against Limiting Hiring Credit

Cal-Tax is reporting on a new Enterprise Zone related case before the SBOE: An attempt by the Franchise Tax Board to narrow the scope of the enterprise zone hiring credit by limiting seniors’ eligibility was rejected unanimously in a tax appeal decided by the Board of Equalization on August 19. In the Appeal of DeVry, […]

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