December 2014
Statutory Interpretation
When a party seeks to deviate from a statutory formula under S.C. Code Section 12-6-2320(A), the proponent of the alternative formula bears the burden of proving by a preponderance of the evidence that: (1) the statutory formula does not fairly represent the taxpayer’s business activity in South Carolina, and (2) its alternative accounting method is reasonable.
Carmax Auto Superstores West Coast, Inc. v. South Carolina Department of Revenue, Op. No. 27474 (S.C. Sup. Ct. filed December 23, 2014) (Shearouse Adv. Sh. No. 51 at. 33).
October 2014
Allocation and Apportionment of Business Income
Duke Energy’s principal business is considered “manufacturing” as the term is used in S.C. Code Section 12-6-2252. Accordingly, Duke Energy must apportion its South Carolina income using the formula in S.C. Code Section 12-6-2252.
Duke Energy Corp. v. SCDOR, Op. No. 5274 (S.C. Ct. App. filed October 8, 2014) (Shearouse Adv. Sh. No. 40 at 47).