Attorney Harry D Shapiro's Legal Cases

Tax

EarthData International, et al v. Comptroller

N/A

OUTCOME: Maryland Tax Court decided ro the taxpayer

The taxpayers were engaged in a produciton activity and purchases of photogrammetry equipment, aircraft, hardware and software, film, etc. used in that activity were exempt from the sales tax and the p ... roduct delivered to the customer, a CD-Rolm Disk with the mapping data on it was deemed to be tangible personal property. Because virtually all the customers were federal, state and local governments, no sales tax was owed on the transactions.

Tax

Chester A Asher, Inc. v. Director, Division of Taxation

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OUTCOME: NJ Tax Court ruled in favor of the Division of Tax

The taxpayer, a Pennsylvania candy and confectioner manufacturer, delivered its products to its New Jersey customers in its refrigerated trucks. Unfortunately, its driver's collected payments from cer ... tain customers. Although this practice had ceased at the time the case was tried, it occurred during the years before the court. In its opinion, the court made it clear that this was the only basis for finding New Jersey nexus even though the drivers also picked up damaged candy that was deemed di minimus. However, delivery of the product in the taxpayer's trucks did not establish nexus.

Tax

Sodexho Marriott Management v. Comptroller

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OUTCOME: Maryland Tax Court ruled for the taxpayer

The taxpayer that provided management of the food service operations in a number of tax exempt hospitals and nursing homes was assessed sales taxes on its purchases even though it used the tax exempt o ... rganizations exemption certificates with the vendor. The Tax Court agreed with Sodexho that as the food service manager for each institution that it was entitled to use the tax exemption of the organizaton to make purchases for it.

Tax

Comptroller v. Armco, Inc., 70 Md. App. 403

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OUTCOME: The Taxpayer prevailed

The Court of Special Appeals agreed that the Maryland Tax General Article provision that denied a shareholder of a DISC the exclusion of 50% of the deemed dividend if the shareholder did not conduct mo ... re than 50% of it business in Maryland was unconstitutional as a violation of the Commerce Clause.

Tax

McCormick Delaware v. Director, Division of Taxation

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OUTCOME: The case was settled.

The issue was the taxation of McCormick & Company's Delaware subsidiary that licensed trademarks and tradenames to its Maryland parent. After the trial in the New Jersey Tax Court, the case was held pe ... nding the outcome in Lanco. After the New Jersey Supreme Court upheld the taxation of Lanco, the cased was settled on a very favorable basis given what was proven during the two day trial.

Tax

Comptroller v. SYL, Inc., 375 Md. 78

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OUTCOME: Comptroller prevailed in the Court of Appeals

The issue was could Mayland tax Syms Corps Delaware subsidiary that licensed trademarks and tradenames to its parent as well as making loans to it. Both the Maryland Tax Court and the Circuit Court for ... Baltimore City decided that the Comptroller could not tax the Delaware company that had no physical presence in Maryland based on the Commerce and Due Process Clauses. The Court of Appeals reversed and reasoned that SYL could be taxed in Maryland because it lacked substance separate and apart form its parent, and as a result, the Maryland activities of its parent could be attributed io it. The Court did not rule that it was a sham transaction that would have meant that the transaction was disregarded rather than tax the Delaware corporation. Also, the Court did not adopt the economic nexus theory of the Geoffrey case. Both of these positions were advocated by the Comptroller.