New York - Foreign corporation licensee fee assessed at higher rate, out-of-state law held not to apply

An administrative law judge (ALJ) concluded that a foreign corporation was properly assessed the New York corporation license fee at the higher rate because, per its articles of incorporation, its shares had no par value. The ALJ declined to apply statutory provisions from the state of incorporation that deemed the corporation’s shares to have a $1 par value. Foreign corporations often are unaware of this fee and this case shows the state’s desire to assess outstanding liabilities on audit – even though repeal of the tax may be considered in upcoming deliberations regarding tax reform in the state. [Frog design, inc., New York Division of Tax Appeals, Administrative Law Judge Unit, DTA No. 824375, November 27, 2013]

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