NJ Tax Court Upholds Investment Co. Deduction Test

Law360, New York (January 21, 2014, 1:51 PM EST) -- The New Jersey Tax Court on Friday upheld an economic test used by the state when determining whether a business qualifies as an investment company for corporate business tax purposes, saying the Division of Taxation acted within its authority when it adopted a 90 percent deduction test.

Judge Christine M. Nugent brushed off arguments by Regent Corp. of Union Inc. that the length and complexity of the deduction test, which is one part of a three-pronged test used by the state taxing agency, proved it was...
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