‘Polychim’ Puts Louisiana Corporate Franchise Tax Against the Ropes

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

The Louisiana First Circuit Court of Appeal recently rejected in Bridges v. Polychim USA Inc. a state Department of Revenue attempt to impose franchise tax on an out-of-state corporation based on interests it holds in a pass-through entity conducting business there. In this article, Kathryn S. Friel of Jones Walker LLP discusses the ruling, its similarities to UTELECOM Inc. v. Bridges and its implications for the future.