A&E Properly Took Business Deduction From NYC Tax, Tribunal Says

A&E Television Networks LLC was right to take a deduction from New York City unincorporated business tax for expenses that are also deductible under federal law, a city tribunal affirmed.

The city’s tax code was written with the express purpose of conforming with federal income tax rules, the New York City Tax Appeals Tribunal ruled Wednesday. “Any other interpretation would produce an absurd result, essentially empowering the city to apply the federal income tax under the UBT whenever and however it chooses,” the panel held.

As part of A&E’s acquisition of Lifetime Entertainment Services in 2009, the shares of A&E ...