Joseph Lipari and Aaron S. Gaynor 'Misrahi' a Reminder That Form Matters in Affiliate Transactions
There is often "a degree of casualness" in the case of transactions between affiliated parties, and that casualness can lead to unexpected tax consequences. In this edition of their Tax Appeals Tribunal column, Joseph Lipari and Aaron S. Gaynor discuss a recent Division of Tax Appeals determination, which engages with similar issues in the income tax context, and serves a reminder that good form matters.
September 14, 2021 at 11:40 AM
8 minute read
Three years ago, this column discussed the sales tax consequences of intercompany book entries among a group of affiliated companies. See Joseph Lipari and Aaron Gaynor, Recent Case Demonstrates Risk of Sales Tax in Affiliate Transactions, NYLJ (Sept. 6, 2018). As that entry noted, there is often "a degree of casualness" in the case of transactions between affiliated parties, and that casualness can lead to unexpected tax consequences. A recent Division of Tax Appeals determination, Sion Misrahi and Esther Misrahi-Elting, DTA Nos. 828818 and 828822 (N.Y. Div. Tax App., March 11, 2021), engages with similar issues in the income tax context, and serves a reminder that good form matters.
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