Disney Urges Justices to Review NY Foreign Royalty Tax Ruling

New York’s highest court applied the wrong standard for evaluating commerce clause challenges in a lawsuit over the state’s tax treatment of foreign royalties, The Walt Disney Co. told the US Supreme Court.

The New York Court of Appeals ruled in April that Disney and IBM Corp. can’t deduct payments from their foreign affiliates that produce and license intellectual property under a state law add-back provision in effect from 2003 to 2013. The court upheld the New York Department of Taxation and Finance’s interpretation of the statute and held that any burden it created on interstate or foreign commerce was ...