State and Local Tax Practice Chair Michael Bowen discussed an Appellate Tax Board ruling in an article for Law 360 Tax Authority. The ruling upheld the Massachusetts Department of Revenue’s decision to deny VAS Holdings & Investments LLC (VASHI) tax abatement gains from the sale of interest in Cloud5 LLC. In response, VASHI – which is represented by Bowen – submitted a brief with the Massachusetts Supreme Judicial court asserting the tax board created a novel apportionment methodology without a compelling reason to turn from a well-established precedent.
“The proposed apportionment methodology is ‘novel’ because it has never been raised – much less applied – in Massachusetts law,” Bowen said.