Thursday, February 05, 2009
Ind. Decisions - Tax Court decides one
In Belterra Resource Indiana v. Ind. Dept. Rev., a 7-page opinion issued 2/4/08, Judge Fisher concludes:
In this light, the subject transaction may seem suspicious: title to the Miss Belterra was transferred to Belterra in international waters immediately after Pinnacle acquired it. Belterra, however, explains that it was necessary for Pinnacle to contract for the construction and purchase of the riverboat because Pinnacle “had the access to the capital and relationships with lenders necessary to engage in the construction of a multi-million dollar riverboat such as the Miss Belterra.” (Plant Aff. ¶ 2, May 11, 2007.) The Department has offered no evidence to controvert that claim. Because Belterra’s stated business purpose is facially valid, the Court concludes that Belterra’s transaction was not a sham.
Conclusion. For the foregoing reasons, Belterra is not subject to use tax on its acquisition of the Miss Belterra. Accordingly, Belterra’s motion for summary judgment is GRANTED, and the Department’s motion for summary judgment is DENIED.
Posted by Marcia Oddi on February 5, 2009 01:25 PM
Posted to Ind. Tax Ct. Decisions