Foley partner Lynn Gandhi commented in the Bloomberg Tax article, “High Court’s Catholic Charities Case to Go Beyond Unemployment,” sharing insight on the implications of a recent Supreme Court ruling in a tax case.
Gandhi said that the case reminds the courts to simply apply the plain language of tax statutes instead of interpreting laws that are already clear. She explained that revenue agencies and some courts have a tendency to interpret an exemption statute against the taxpayer and in favor of the government – particularly in sales and use tax cases – even though the legislature has clearly granted the tax break. Gandhi noted that this ruling could be cited in sales and uses tax cases going forward.
“You have a business saying, ‘Hey, we think this exemption applies.’ And you now have either the agency or a court giving its twist on the interpretation of the exemption. It shouldn’t be needed,” she added.
