Tractor Supply Looks to Avoid $1 Million South Carolina Tax Bill

Tractor Supply Co. asked the South Carolina Court of Appeals to overturn a $1.4 million corporate income tax bill rooted in the state’s argument that the company and related entities should file combined tax returns.

An administrative law judge found in August 2023 that the South Carolina Department of Revenue properly required the farm retailer to use “combined unitary reporting” to remedy unreliable transfer pricing between it and two subsidiaries. Transfer pricing refers to how companies assign prices to transactions among related entities, and it can be used to artificially shift income from a higher tax jurisdiction to a lower ...