We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Ill. Car Dealership Can't Escape $5M Sales Tax Liability

Law360, Washington (March 28, 2017, 1:58 PM EDT) -- The Illinois Independent Tax Tribunal rejected a car dealer’s effort to wriggle free from a $5 million tax bill based on cash-back payments given to customers for vehicle trade-ins, finding that the payments should have reduced the valuation of trade-in credits the dealer deducted from its tax liability.

The tribunal rejected Motor Werks of Hoffman Estates Inc.’s claim that Illinois sales tax regulations permitted it to deduct the full credit it gave customers for vehicle trade-ins from its tax liability between 2003 and 2010, including advance...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.