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Thursday, June 21, 2012

Ind. Decisions - Supreme Court decides one today, so far

In Indiana Department of Revenue v. United Parcel Service, Inc., an 11-page, 5-0 opinion, Justice Rucker writes:

In this case we examine whether income received by a corporation’s affiliated foreign reinsurance companies falls within the ambit of Indiana’s gross premium privilege tax statute and is on that basis exempt from Indiana adjusted gross income tax. * * *

In sum, even assuming UPINSCO and UPS Re reinsured Indiana risks, there is no evidence in the record before us that the reinsurance transactions took place in the State of Indiana. Stated somewhat differently, none of the summary judgment materials presented to the Tax Court and in consequence nothing before this Court establishes that during the years in question UPINSCO and UPS Re were doing business within the State of Indiana. Because this is a necessary condition in order to be “subject to” the premium tax, UPS failed in its burden of establishing that it is entitled to summary judgment as a matter of law. Because we are definitely and firmly convinced the Tax Court’s determination to the contrary is in error, we reverse the grant of summary judgment in favor of UPS and remand this cause for further proceedings.

Conclusion. The judgment of the Tax Court is reversed and this cause remanded.

Posted by Marcia Oddi on June 21, 2012 10:56 AM
Posted to Ind. Sup.Ct. Decisions