Mastercard’s Tax Position Scrutinized by South Carolina Panel

A panel of South Carolina appellate judges had tough questions at oral arguments Wednesday for Mastercard International Inc. in its case over how to determine what portion of its business is taxable in the state.

Mastercard argues it doesn’t do any business in the state because its credit card network and transaction processing functions occur elsewhere. It wants the South Carolina Court of Appeals to overturn a ruling that sourced its business to where cardholders made purchases, subjecting it to a corporate income tax bill of more than $6 million for 2007 to 2016.

A ruling in the state’s favor ...