NY Top Court reacts mildly to Disney, IBM tax position.

TLDR:

• New York’s highest court seemed unimpressed with Disney and IBM’s positions in a tax deduction case.
• The companies could potentially lose millions of dollars depending on the court’s ruling.

Disney and IBM are challenging rulings that prevent them from deducting payments from their foreign affiliates for producing and licensing intellectual property. The New York Court of Appeals is considering their arguments, which could have significant financial implications for the companies.

Key Elements of the Article:

Disney and IBM are seeking to overturn rulings that affect their ability to deduct payments from their foreign affiliates for intellectual property.

The New York Court of Appeals will have a substantial impact on the companies, with Disney potentially facing $4 million in losses and IBM facing $64 million.

The companies’ arguments are being scrutinized by the court, with concerns raised about potential tax loopholes and windfalls for corporations.