Eminence submitted a comment letter to the NYC Department of Finance as it develops regulations for the business corporation tax, in particular, rules relating to the “allocation approach …for income that flows from a partnership to a corporate partner” and the “allocation of income from passive investment customers”.
Eminence commends the department for soliciting public feedback, but fundamentally believes that:
- The Department lacks the statutory authority to promulgate a regulation in direct conflict with the customer-based sourcing rules for corporations and other clear and unambiguous statutory provisions.
- Even if the Department possessed the requisite statutory authority, the Department should avoid promulgating such a regulation on public policy grounds
