Little-Acorn
10-04-2011, 11:33 AM
Somehow I get the feeling that this is not the first time this scenario has come up. What other companies charge people in other states to use their name, logo, secret recipies (or plans or patents maybe?), without the company having an actual physical presence in the state? And how have taxes for those other companies gotten worked out?
This is a little odd.
What say ye?
------------------------------
http://www.businessweek.com/ap/financialnews/D9Q4SNFO0.htm
Court won't stop Iowa from forcing KFC to pay tax
The Associated Press
October 3, 2011, 10:50AM ET
WASHINGTON - The Supreme Court won't stop Iowa from forcing KFC Corp. to pay nearly $250,000 in corporate income taxes, even though it had no restaurants or employees in the state.
The high court on Monday refused to hear an appeal from the fried-chicken giant, which a decision by that state's Supreme Court overturned.
All KFC restaurants in Iowa are independent franchises, whose owners pay KFC for the use of its logo and systems. But the Iowa Department of Revenue and Finance assessed the company more than $248,000 in unpaid corporate income taxes, including interest and penalties, in 2001. The taxes were for 1997 to 1999.
KFC says it doesn't owe Iowa taxes because it doesn't have property in the state. But Iowa judges have not agreed with that argument.
This is a little odd.
What say ye?
------------------------------
http://www.businessweek.com/ap/financialnews/D9Q4SNFO0.htm
Court won't stop Iowa from forcing KFC to pay tax
The Associated Press
October 3, 2011, 10:50AM ET
WASHINGTON - The Supreme Court won't stop Iowa from forcing KFC Corp. to pay nearly $250,000 in corporate income taxes, even though it had no restaurants or employees in the state.
The high court on Monday refused to hear an appeal from the fried-chicken giant, which a decision by that state's Supreme Court overturned.
All KFC restaurants in Iowa are independent franchises, whose owners pay KFC for the use of its logo and systems. But the Iowa Department of Revenue and Finance assessed the company more than $248,000 in unpaid corporate income taxes, including interest and penalties, in 2001. The taxes were for 1997 to 1999.
KFC says it doesn't owe Iowa taxes because it doesn't have property in the state. But Iowa judges have not agreed with that argument.