Cases & Deals

Carlson and TGI Friday's resolve Maryland income tax disputes

Client(s) Carlson Inc. and TGI Friday's Minnesota

Jones Day represented Carlson Inc. and TGI Friday's Minnesota favorably in Maryland Tax Court cases involving the Maryland Comptroller's assertion of income taxes equal to the tax reduction associated with valid expenses allowed for interest and royalties charges to affiliated entities doing business in Maryland. The cases involved various state and federal law violations, including improper tax computations, attempted retroactive application of the Maryland royalty and interest add-back provisions, and unfair apportionment of taxes imposed on companies conducting their business outside of Maryland. Prior to trial, the case settled favorably in September 2011.