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Alaska High Court Revives Tax Haven Law Over Nabors Challenge

Aug. 5, 2022, 8:25 PM

A unit of oil drilling company Nabors Industries Ltd. failed to convince the Alaska Supreme Court that a state statute to combat the use of tax havens is unconstitutional.

Alaska found Nabors International Finance Inc., a nonresident corporation doing business in the state, owed more income taxes for tax years 2007 to 2010 because it didn’t include affiliated corporations that operate in low-tax countries on its tax return.

The high court reversed a trial court ruling that the reporting statute is constitutionally vague because it lacks a conjunction between two criteria defining corporations subject to the regime. The statute “can ...