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Tax Court rules against UPS reinsurer on case justices reversed, remanded

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United Parcel Service and its reinsurance affiliates are obligated to pay about $650,000 in taxes from the years 2000 and 2001, the Indiana Tax Court held. The court previously ruled in UPS’s favor, but this opinion comes on remand from an Indiana Supreme Court reversal.

In United Parcel Service, Inc. v. Indiana Department of State Revenue, 49T10-0704-TA-24, Senior Judge Thomas G. Fisher granted summary judgment in favor of the Indiana Department of Revenue, a reversal of the court’s order in 2010 granting summary judgment in favor of UPS and its reinsurance affiliates UPINSCO and UPS Re.

Indiana statutes governing the insurance premium tax for “foreign” insurers are clear, Fisher wrote, and UPS and its entities were not entitled to an exception for doing business in the state.

“Indeed, nearly a century ago, the Indiana Court of Appeals explained that the predecessor to Indiana Code § 27-1-18-2 was a graduated privilege tax, designed to raise revenue and “imposed upon a foreign [insurance or reinsurance] corporation for the privilege of exercising its corporate franchises and carrying on business in a corporate capacity within the state,” Fisher wrote.

“Moreover, Indiana Code § 6-3-2-2.8(4) merely exempts foreign reinsurance corporations that conduct business within Indiana from the corporate income tax because they are ‘subject to’ the premiums tax under Indiana Code § 27-1-18-2. See I.C. § 6-3-2-2.8(4). These statutes, therefore, plainly concern the regulation and taxation of insurance and are immune from Commerce Clause challenges,” Fisher wrote.  
 

 

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  1. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  2. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

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