Legal Document

512 U.S. 298114 S.Ct. 2268129 L.Ed.2d 244 BARCLAYS BANK PLC, Petitioner,v.FRANCHISE TAX BOARD OF CALIFORNIA. COLGATE-PALMOLIVE COMPANY, Petitioner, v. FRANCHISE Nos. 92-1384, 92-1839. Supreme Court of the United States Argued March 28, 1994. Decided June 20, Syllabus * During years at issue in these consolidated cases, California used a "worldwide combined reporting" method to determine corporate franchise tax owed by unitary multinational group members doing business California. California's first looked worldwide income business, and then taxed percentage that equal average proportions payroll, property, sales located within In contrast, Federal Government employs "separate accounting" method, which treats each entity discretely for purpose determining liability. Container Corp. America Franchise Tax Bd., 463 159, 103 2933, 77 545 this upheld scheme as applied domestic-based multinationals, but did not address constitutionality domestic corporations with foreign parents or subsidiaries. Both petitioner Barclays Bank PLC (Barclays) — Colgate-Palmolive Co. (Colgate) have operations separate two Colgate were denied refunds authorities. Held: The Constitution does impede application Colgate. Pp. ____. (a) Absent congressional approval, state on interstate commerce will survive Commerce Clause scrutiny if taxpayer demonstrates (1) applies an activity lacking substantial nexus taxing State; (2) is fairly apportioned; (3) discriminates against commerce; (4) related services State provides. Complete Auto Transit, Inc. Brady, 430 274, 279, 97 1076, 1079, 51 326. A affecting raises additional concerns: one prompted "enhanced risk multiple taxation," Corp., supra, U.S., 185, S.Ct., 2951, other Government's capacity " 'speak voice when regulating commercial relations governments,' Japan Line, Ltd. County Los Angeles, 441 434, 449, 99 1813, 1822, 60 336. easily meets all third criteria. As third, has shown system fact operates impose inordinate compliance burdens enterprises, its claim unconstitutional discrimination thus fails. (b) Nor "reasonable approximations" reducing burden incompatible due process. argues no standard what approximations be accepted, presented example approximation rejected unreasonable. Furthermore, judiciary construed law curtail discretion officials, afforded opportunity seek clarification meaning relevant regulations. Rules governing international multijurisdictional allocation inescapable imprecision given subject matter's complexity, rules vagueness are mechanically applied; rather, their tied nature enactment. (c) expose such Barclays, constitutionally intolerable taxation. face similar challenge, approved very multinational. considerations informed decision dispositively diminished foreign-based enterprise. Multiple taxation inevitable result tax, alternative reasonably available accounting cannot eliminate, some cases may even enhance, double (d) also prevent from speaking "one voice" trade. Congress holds control rein area. 11 since barred using reporting method. past three decades, aware governments deplored use nevertheless failed enact any numerous bills, ratify treaty provision, would prohibited practice. Executive Branch actions, statements, amicus filings do supply requisite federal directive proscribing States' reporting, regulatory authority Congress' wield. communications express policy lack force render otherwise valid, congressionally condoned scheme. 10 Cal.App.4th 1742, 14 Cal.Rptr.2d 537, 1768, 13 761 (1992), affirmed. GINSBURG, J., delivered opinion Court, REHNQUIST, C.J., BLACKMUN, STEVENS, KENNEDY, SOUTER, JJ., joined, Part IV-B SCALIA, joined. filed concurring opinion. part judgment. O'CONNOR, judgment dissenting part, THOMAS, 1 Joanne M. Garvey, San Francisco, CA, Bank, PLC. 2 James P. Kleier, 3 Drew S. Days, III, New York City, curiae special leave Court. 4 Timothy G. Laddish, Oakland, respondent BD. 5 John D. Schell, Sacramento, Ca, Palmolive 6 Justice GINSBURG 7 Eleven ago, (1983), income-based enterprise, comprehensive challenge made under Due Process Clauses Constitution. involved domiciled headquartered States; addition stateside components, had number overseas subsidiaries incorporated countries they operated. Court's "domestic [to] either subsidiaries." Id., 189, n. 26, 2952 26. before us, we return earlier considered resolve matters left open case. 8 No. (Barclays), Kingdom corporation Group, banking 92-1839, (Colgate), States-based parent manufacturing Each enterprise here issue, determined known reporting." attributed portion (equal California) operations. imposed Barclays' Colgate's business. 9 urges distinctively multinationals results taxation, violation Clauses. contend offends frustrating ability "speak governments." 336 (1979) (internal quotation marks omitted). We reject arguments, hold Accordingly, affirm judgments Appeal. A. Constitution, held, nonresidents "tax[ing] value earned outside [the State's] borders." ASARCO Idaho Comm'n, 458 307, 315, 102 3103, 73 787 (1982). But more than jurisdiction, arriving "precise territorial allocations 'value' often elusive goal, both theory practice." 164, 2939. Every devised involves degree arbitrariness. See id., 182, 2949. 12 One means deriving locally taxable income, generally collect taxes, "unitary business" explained "rejects geographical transactional accounting," "subject manipulation" fully capture "the many subtle largely unquantifiable transfers take place among components single enterprise." 164-165, 2940. business/formula apportionment" "calculates local base defining scope 'unitary business' enterprise's activities jurisdiction form apportioning total between rest world basis formula taking into account objective measures corporation's without jurisdiction." 165, 2940.1 1977 1970-1973 assessed employing required aggregate entities composing including aggregation affiliates operating abroad those States. Having defined broadly, long-accepted apportionment, commonly called "three-factor" formula, arrive amount attributable Under three-factor arithmetic inside State. Cal.Rev. & Tax.Code Ann. § 25128 (West 1992). Thus, 8% 3% 4% California, took 5% income.2 B 15 sovereigns major developed nations. contrast liability.3 16 Separate poses conglomerate manipulate minimize To guard manipulation, transactions affiliated must scrutinized ensure reported "arm's length" basis, i.e., price reflecting true market value. 26 U.S.C. 482; Treas.Reg. 1.482-1T(b), CFR 1.482-1T(b) (1993).4 Assuming assigned arm's length values accounts, taxes operate borders only recognize own books. 2950-51.5 17 At time, during issue. recent years, States, modified systems least allow election variant approach confines "water's edge." Hellerstein Hellerstein, supra 1, ¶ 8.16, pp. 8-185 8-187. 1986 modification effective 1988, Cal.Stats., ch. 660, 6, it nearly last give way. p. 18 taxpayers, State's water's edge alternative, elect limit whose individual presence surpasses certain threshold. 25110 1992); see Leegstra, Eager, Stolte, Water's-Edge Election, J. St. Tax. 195 (1987) (explaining operation system). amendment conditioned group's payment fee, allowed Board (Tax Board) disregard circumstances. 1993, again statute, time enterprises treatment fee threat disregard. 1993 31, 53; 881, 22. Supp.1994). new amendments became January C 19 refund suit brought Based Kingdom, Group includes 220 refund-seeking family therefore tax. (Barcal), was wholly owned International Limited (BBI), second taxpayer. BBI, corporation, 33 nations territories. 20 computing based Barcal BBI assumption participated composed itself subsidiaries, parent's After auditing BBI's Barcal's year returns, Board, here, Group. Ultimately, liability $1,678 $152,420 Barcal.6 21 paid assessments sued refunds. They prevailed lower courts, unsuccessful held impair commerce, violate Clause. so concluded, remanded case Appeal further development violated nondiscrimination requirement Barclay's Int'l, Cal.4th 708, 829 P.2d cert. denied, 506 ----, 113 202, 121 144 (1992). On remand, decided issues 537 (3d Dist.1992), review. us writ certiorari 510 114 379, 126 329 (1993). conceded, purposes litigation, entire formed 1977.7 22 93-1839, Co., Delaware York. engaged principally manufacture distribution household personal hygiene products. addition, 75 operated entirely primarily When returns basis. Essentially, maintained compelled reach principle edge. should computed 4-year deficiency $604,765.8 refund. 23 Superior found condemned impermissibly intrusive upon Nation's uniformly regulate relations. 319715 (Super.Ct. Sacramento County, Apr. 19, 1989) (reprinted App. Pet. Cert. 88a-102a). reversed, concluding evidence Executive's opposition insufficient. 1681, 1700-1712, 284 Cal.Rptr. 780, 792-800 Dist.1991). returned instructions "to vacate refile after light of" Barclay's. --- 358, 831 798 decision, ruled Dist.1992). review, Like concedes, question, worldwide, unitary. II 24 expressly gives power "[t]o Nations, several States." Const., Art. I, 8, cl. 3. It long been understood, well, provide "protection legislation inimical national [even] where acted. . ." Southern Pacific Arizona ex rel. Sullivan, 325 761, 769, 65 1515, 1520, 89 L.Ed. 1915 (1945); South Carolina Highway Dept. Barnwell Brothers, Inc., 303 177, 58 510, 514, 82 734 (1938) (Commerce "by prohibits commerce").9 shield (or foreign) "fair share burden." Department Revenue Washington Association Stevedoring Cos., 435 734, 750, 98 1388, 1399, 55 682 (1978). however, provided 326 (1977). 25 unique context commerce," constrained because need uniformity." Wardair Canada, Florida Revenue, 477 106 2369, 2373, 91 (1986). 'In respect intercourse trade people act through government unified adequate power.' 448, 1821, (1979), quoting Trustees 289 48, 59, 53 509, 1025 (1933). concerns four delineated Auto. enhanced taxation." 2951. relates governments.' Michelin Tire Wages, 423 276, 285, 96 535, 540, 46 495 (1976). met taxpayers Barcal, question. Mobil Oil Commissioner Taxes Vt., 445 425, 436-437, 100 1223, 1231-1232, 63 (1980).10 satisfied. Neither nor demonstrated "rational relationship intrastate enterprise," 180-181, 2948 omitted); petitioners "out appropriate proportion transacted [taxpayers] State." 181, note regard that, "if every jurisdiction," "would being taxed." 169, 2942. And surely "protection, opportunities benefits" can exact return. Wisconsin J.C. Penney 311 435, 444, 61 246, 250, 85 267 (1940); 3108. 27 (but Colgate) vigorously contends, violates antidiscrimination component test. maintains foreign-owner filing "is forced convert diverse financial records around language, currency, principles States" "prohibitive" expense. Brief Petitioner 44.11 Domestic-owned incur expense "already keep most English, accord principles." 45. imposing "prohibitive administrative burden," 43, foreign-owned competitive advantage U.S.-owned counterparts constitutes "economic protectionism" kind condemned. 43-46. 28 Compliance burdens, disproportionately out-of-jurisdiction indeed inconsonant See, e.g., Hunt Apple Advertising 432 333, 350-351, 2434, 2445, 383 (1977) (increased costs North statute out-of-state apple producers tend industry competition growers," thereby discriminating growers). factual predicate claim, infirm. 29 points provisions implementing regulations setting out discrete fulfill requirements. modes require gather present much information ordinary course business.12 regulations, "shall consider effort obtain necessary information" and, "appropriate data regular business," accept approximations." Cal.Code Regs., Title 18, 25137-6(e)(1) (1985). comprehended, "used [latter] [made] computations reasonable approximations," 1756, allowing avoid large complains.13 provision systematically "overtaxes" particular. 30 sum, enterprises. III 31 additionally "Foreign multinationals," maintains, "remain peril there 'approximations' accepted." 49. presents substantive grievance concerning received, instead complains "[t]he grant standardless process," show "actual harm arbitrary application." Ibid. 32 note, initially, "reasonableness" guide admitting judicial review myriad settings, encounters police citizenry, Terry Ohio, 392 27, 88 1868, 1883, 889 (1968) (Fourth Amendment permits officer's limited search weapons circumstances "reasonably prudent man warranted belief his safety others danger" inferences draw[n] facts [officer's] experience"), closely analogous context. 162 (allowing deductions expenses, allowance salaries compensation"); 167 (permitting allowance" wear tear depreciation deduction); Ragen, 314 513, 522, 62 374, 377-378, 86 (1942) (noting determinations reference 'reasonableness' [are] unusual laws"). next observe officials. Cal.App.4th, 1762, Cal.Rptr.2d, 549 (the "regularly-maintained readily-accessibly documents" deciding whether "cost producing [worldwide reporting] justifies submission approximations"). furthermore, clarify regulation[s] inquiry, resort process." Hoffman Estates Flipside, Estates, 455 489, 498, ,S.Ct. 1186, 1193, 71 362 Taxpayers, scheme, "an advance determination" regarding consequences proposed action. 25137-6(e)(2) 34 complexity matter. 192, 2954 (allocation "bears resemblance slicing shadow").14 Mindful "mechanically applied" depend, application, enactment," transgress constitutional limitations regard, process argument weighty placed heading. IV 35 Satisfied "proper fair" tested Auto's guides, 184, 2950, proceed "additional scrutiny" seeks commerce. 2950. First 36 obligation "foreign corporations," 193, 2955 (emphasis added), charge unconstitutionally exposed taxation.15 contends situation compels different outcome, creates 'more aggravated' 32, 325059 325061 Aug. 1987) A-26). rests observation typically [compared to] smaller 33.16 result, higher sovereigns. This reality, concludes, multinational, include group, breadth greater multinationals." 37 question assertion high jurisdictions wage rates, property values, prices correspondingly 187, 2951-2952; cf. 199-200, 2958 (Powell, dissenting) (describing how formulary apportionment leads taxation). average, counterparts. Corp.'s approval insufficiency might occur; indeed, accepted taxpayer's occurred. 2951 ("[T]he like resulted actual sense appellant's part."); 22, 38 holding relied considerations: first, "inevitable result" tax;17 second, "alternativ[e] State" (i.e., version accounting/"arm's approach), 188-189, 2952, "could eliminate taxation" enhance risk. 191, 2954.18 underscored "even though adopted arm's-length general outlines, precise reallocate differ substantially, whenever difference exists, possibility exists." added); ("California trouble avoiding 'arm's-length' approach. ."). 39 These foreign, opposed domestic, multinationals. "inevitable"; existence vel non remains, dependent "on case." 188, 2952. if, adoption lessen domestic-owned corporations, reason why corporations. refused up sometimes favor another 2955. domicile parent) factor inadequate warrant retraction position. 40 Recognizing occur whatever adopts, dissent finds impermissible [dormant] Foreign Clause" protection access political process, occurs "because State] conform Post, image politically impotent transactor belied battalion marched aid, deploring diplomatic notes, briefs, retaliatory legislation. infra, ____, 22; post, Indeed, responded impressive eliminated mandatory reporting. view activity, holds, agree "international practice" dictate jurisprudence. adhere precedent set 41 turn, finally, ultimately energetically presented: Did requirement, Colgate, "impair uniformity area essential," 1821; particular, "preven[t] 'speaking voice' trade"? 453, 1824, 540. 42 Two decisions inform our judgment: 1983 determination Corp.; later standard. bears case, BBI's, extent: "[T]he [in Corp.] imposed, ., corporation." 195, 2956.19 Other factors emphasized complaints now us.20 Most significantly, "specific indications intent" preempt tax: 43 "First, statutes themselves pre-emptive force. Second, although party great treaties adopt analysis waived contracting Third, entered cover subnational governmental units none restriction 'non-arm's-length' methods apply Moreover, Senate occasion, considering treaty, attached reservation declining consent extended Finally, debated, enacted, designed income." 196-197, 2957 (footnotes internal 44 confronted (1986), Florida's sale fuel common carriers, airlines. Air carriers aviation purchased Florida, carrier consumed in-state Wardair, Canadian airline charter flights conceded challenged satisfied criteria entailed Joined curiae, urged "threaten[ed] voice.' 9, 2373. There "a policy," asserted, "of reciprocal exemptions aircraft, equipment, supplies, fuel, constitute instrumentalities air traffic"; policy, argued, "represents statement 'one wishes make," "threatened [Florida's tax]." 45 disagreed, observing proffered disclosed described intended permit fuel. convention resolution 70 bilateral exemption traffic, explained, indicated far less: "[W]hile appears aspiration hand impediments travel presently stands acquiesces subdivisions countries." 10, 2374 original). agreements concluded "[b]y negative implication arising [these accords,] acquiesced travel," 12, 2375. action constitutional. An important premise underlying decisions21 this: passively indicate practices convey intent unmistakable clarity regulation falls short inspection. Maine Taylor, 131, 139, 2440, 2447-2448, 110 (1986) (requiring "unambiguous indication insulate "otherwise invalid legislation" dormant scrutiny); Northwest Airlines, Kent, 855, 127 183 (1994) (same). 47 discern bar challenged. Our upholding ball court; Congress, branch responsible 3, nationally uniform "essential," could enacted prohibiting elapsed 48 decades displeased requirements,22 occasions studied enterprises.23 bills introduced varied, compelling inclusion, derived substantially sources States.24 Another requiring report tax;25 thus, source income" ordinarily reported. 5. None enacted. 49 history States/United referred 196, 2956-2957, reinforces conclusion implicitly permitted originally negotiated President, Convention Avoidance Double Taxation Prevention Fiscal Evasion Respect Income Capital Gains precluded Kingdom-controlled compute income. 9(4), U.S.T. 5670, 5677, T.I.A.S. 9682.26 124 Cong.Rec. 18670 (1978), ratified agreement, 19076, [Article 9(4) ] shall subdivision 18416. final British nationals, 2(4), 5671; 24, 5687-5688,27 5709. 50 Given indicia willingness tolerate mandates, mandates parents, conclude nuances province [so] seriously threatened," 2956, practice intervention.28 make essential conducting affairs. Matters relating conduct exclusively entrusted branches immune inquiry interference." Harisiades Shaughnessy, 342 580, 589, 72 512, 519, 586 (1952). For reason, amici's likely provoke governments29 directed wrong forum. vested decide "how balance particular retaliation sovereign right whole let please." 194, support interferes voice," distinguish series filings, Corp.30 taken together, pronouncements "clear directive" 36, 52 statements refers, perform service enlist them. grants "regulate Nations." I., detailed, nn. 23-27, focused attention refrained exercising prohibit state-mandated That outlaw practice, encountered unreceptive interfered speak voice, rather preeminent speaker yield floor others. Cf. Itel Containers Int'l Huddleston, 507 1095, 1108, 122 421 (1993) (SCALIA, judgment) ("[The President] better able interests currently subordinated interest neither he Congress."). "delegate over President," who "also possesses powers conferred him Commander-in-Chief organ affairs." Chicago Lines, Waterman S.S. 333 103, 109, 68 431, 92 568 (1948). President's pursuant delegated treaty; President displace legally binding executive nations31 "in absence denial authority, [where] rely independent powers." Youngstown Sheet Tube Sawyer, 343 579, 637, 863, 871, 1153 (1952) (Jackson, concurring). actions press releases, letters, briefs relies merely precatory. condoned, reporting.32 54 'not overseer government.' Dames Moore Regan, 453 654, 101 2972, 2976, 69 918 (1981), 594, (Frankfurter, State, led apportioned, nondiscriminatory, imposition inevitably area, evaluate best served uniformity, autonomy. Affirmed. 56 concurring. 57 Last Term, ---- 1110, (BLACKMUN, dissenting), I expressed my disagreement willingness, applying test, "infe[r] permission [a] supposed failure it." also, Canada 2378, dissenting). accordingly inaction "that method." Ante, Nevertheless, today's controlled directly Itel, supra; 1821. join 59 concur except IV-B, disposes petitioners' "negative" test (1979). stated Term 1106-1107, judgment), "I enforce self-executing, 'negative' circumstances: facially [interstate foreign] indistinguishable type previously Court." 1106-1107 (footnote circumstances, employ choose insofar concerned. circumstance exists survives commerce-clause attack. am sure today, requires legislative establish "Congress ante, prove consequences. is, moreover, unquestionable improvement Itel: whereas gave Branch, restores albeit strangely exercised silence. whom THOMAS joins, part. joined Powell continue think erred group. private parties justifiably seen fit override overruled, Quill Dakota Heitkamp, 504 112 1904, 1916, 119 (1992) (slip op., 18-19), resolves raised Colgate-Palmolive. hand, company extend situation. 2952-2953, 32. view, respectfully 92-1384. 64 meet requirements precedents: discriminate Substantially reasons complies factors. (I accepting statutorily ____.) satisfy inquiries: "first, notwithstanding prevents If contravenes precepts, Clause." 451, 1823, added). agreement Line purported Judiciary, Legislature disapproved Although courts scrutinize consistency jurisprudence, outlined (and, context, discussed Line), officials Branch. 1107, judgment). inconsistent positions Solicitor General illustrate perils resting "evidence." Compare Amicus Curiae 21-24 (arguing question), O.T.1992, 92-212, 9-16 unconstitutional). 66 98% trial court "[t]here definite of, well here." A-25. assigns higher; extent (and usually be) inherently already country 67 recognized "ha[d] stem[ming] serious divergence schemes authorities," authorities consistent principle. "inevitable" carry today Terms 198-201, 2957-2959 well. ground invalidated Line: falls, owners instrumentality specifically 'domestically commerce,' clearly reservation." 7, 1819, 7. footnote, continued: "We tax] 26; 2955-2956, recognizes, 15, Corp.: resulting one? answer yes. teaches analogously, same corporation. 447-448, 1820-1821. American groups affiliates, companies countries. incidence full governments) entitled domestically. (absent authorization) adopting rule "leave[s] free corporation," 203, 2960 differential obvious. Domestic levels, simply enjoy. redress normal channels. Minnesota Clover Leaf Creamery 449 456, 473, 17, 715, 728, 659 (1981); Raymond Motor Transportation, Rice, 434 429, 787, 795, 664 too easy, legislature fill coffers outsiders. trading partners objected Demarche Danish Embassy, behalf Governments European Community (Mar. 1993) ("The views EC Member Government. All strong California] communiques 1980 date"); Belgian Australia, Austria, Finland, Japan, Norway, Sweden, Switzerland (Sept. 23, 1993). 19-23. undoubtedly deters investment country. Communities et al. Amici 14-16. adverse consequences, affect Nation whole, solely refusal internationally Unlike dismiss difficulties relying "it perverse, sake factually incorrect, 199, 2957-2958, discussion alternatives proceeded well-established proposition neighbors, Moorman Mfg. Bair, 437 267, 277-281, 2340, 2346-2349, 197 avoided, necessary, fair requirement. 2950-2951; Motors Washington, 377 436, 440, 84 1564, 1567-1568, (1964). squarely instrumentalities: 74 "[N]either sovereign. abroad, right, consistently custom nations, apportioned results. authoritative tribunal capable ensuring value, 'fairly apportioned' reflect instrumentality's [domestic] exposed, clause forbids." 1821 created materialized sufficient contrary. syllabus prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 499. principle" 1897, Adams Express Ohio Auditor, 165 220-221, 305, 308-309, 683; revisited "settled jurisprudence" recently Allied-Signal, Director, Div. Taxation, - 2251, 533 (1992)). W. Taxation: Corporate 8.03, 8-29 (2d ed. 1993); 8.05. "unitary," (business treated unitary, compatibly limitations, exhibits functional integration, centralization management, economies scale); Edison Stores, McColgan, Cal.2d 472, 481, 16, (1947) ("If done contributes state, unitary."); Butler Brothers 664, 678, 111 334, 341 (1941) (A "(1) [u]nity ownership; evidenced central purchasing, advertising, management divisions; unity centralized operation."), aff'd, 315 501, 701, 991 (1942). weight factor. Supp.1994); 946, 1. may, file lieu returns. 1501. Effective enforcement standards exacting commentators maintain event. 8.03 "three inherent defects" accounting: expense, impracticability, difficulty prices). Internal Code, reports effectively connected §§ 882, 884, 864(c). 11, receive credit qualifying 901-908 (1988 Supp. IV). figures were: Worldwide Taxable Formula Business Taxpayer Percentage $401,566,973 .0139032% $5,583,066 $693,696 401,566,973 .0003232% 129,786 16,126 A-13 (Joint Stipulation Facts, 22). successor claims BBI. convenience, uses "Barclays" refer collectively offered following figures, approach: Water's Year 1970 $25,652,055 9.31920% $2,390,566 $167,340 1971 27,520,141 9.01730% 2,481,574 173,710 1972 32,440,358 9.21640% 2,989,833 227,227 1973 36,554,060 8.88730% 3,248,669 269,640 85a). $91,566,729 4.42075% $4,047,936 $283,356 108,177,612 4.12017% 4,457,101 311,997 123,779,352 4.03444% 4,993,803 379,529 151,585,860 3.71812% 5,636,144 467,800 jurisprudence refers self-executing aspect "dormant" Dakota, demands connection "minimum contacts" suffice jurisdiction. 24-25. Noting "any meaningful contact" 25, asserts "California member group." court, suggests did, cause do. "certain intangible 'flows value' serve link various together essentially entity." Formulary unitary) done, "income generated (upholding distinguishing without"). "physical presence" undisputed, find nothing suggest intertwined order approximate taxpayers' estimates, found, conveying thought cost $5 million up, $2 annually maintain. 44, 13; (Super.Ct.Sacramento A-27 A-28). countries" "[a] profit loss 25137-6(b)(1) (1985); "consolidated Securities Exchange Commission," 25137-6(b)(2); shareholders auditor." "relatively modest" just prior ranging $900 $1,250 per annum, Cal.App. 4th, 1760, 548, 9. noted Appeal, preferred entails recourse "akin approximation." 4th 1763, 550 Code allows Secretary Treasury "distribute, apportion, allocate gross deductions, credits, allowances" businesses determines distribution, evasion businesses. A-829 (testimony expert witness 482 approximation[s]" prices); Peck Commissioner, 752 F.2d 469, 472 (CA9 1985) (under 482, IRS sustained unless unreasonable, arbitrary, capricious). reserved altered illustrate, operations: 33. stated: real, 'inevitabl[e]' [W]e faced distinct allocating divides pie formal principles. mathematical generalization. Whether combination twice citation modified, (holding ad valorem cargo containers commerce). confronting "instrumentalities [foreign] companies, said "creates 1823. noted: legal less significant interests. alter analysis." observed create automatic 'asymmetry,' 194-195, 2955, 1824 lead 2280, 17. "without doubt amenable way another," [they] pa[y] function rate 2956. Tennessee's lease shipping; proscribed "various conventions, regulations[,] rational inference drawn th[e] quite class import duties, permitted"). disapproval amici (Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain) Switzerland. notes similarly protesting A-92 A-123, A-127 A-128, A-131 A-138; A-603 (Letter George Schultz Governor Deukmejian (Jan. 30, 1986)) received complaining about virtually world."). Parliament gone further, enacting would, implemented, dividends Finance Act, 1985, Pt. 2., 54, Sch. 13, (Eng.), reenacted Corporation 812 &Par; (Eng.). Pursuant 201 Pub.L. 86-272, Stat. 556, undertook "make complete studies pertaining States," House Committee Judiciary extensive hearings (primarily domestic) implications schemes. Mercantile Manufacturing Corporations: Hearings Special Subcommittee Interstate 87th Cong., 1st Sess. (1961). Subcommittee's Report recommended, inter alia, "formula sole dividing purposes," Commerce: Commerce, H.R.Rep. 952, 89th 1144 (1965), refrain exempt 1135. embodying recommendations. continued study debate matter decades. H.R.11798 Companion Bills: 2d (1966); Finance, 93d (1973); 1273: 95th (1977-1978); Recommendations Task Force Source Income, Ways Means, (Comm. Print 1977); 1980: H.R. 5076 96th (1980); 983 1688 Debt Management Generally Unitary Hearing Economic Policy Relations, 98th (1984). 1245, 2173, (1978); 6146, (1984); 4940, 3061, 1974, 99th 3980, (1986); 1139, 101st (1989); 1775, 102d (1991). 11798, (1965); 5076, (1979); 1688, 8277, 1983, 97th 2918, (1983); 1225, 1113, Article provided: "Except Article, Contracting subdivision, receipts, outgoings (Emphasis added.) 2(4) provides: "For (Non-discrimination), description authorities." "federal embodied preference unconstitutional, out. Curiae, 17-18 original), citing 1237, (1980) ("Concurrent course, norm. explicit infer level identical States."). 25-28; 19-24; al., 16-17. cites, example, Reagan's introduce confining Multinational Corporations, Weekly Comp. Pres.Doc. 1368 (Nov. (Statement Reagan); letters sent Reagan Bush administrations Chairman Committee, expressing 9-27; arguing Clause, Bridge Iron Caterpillar Tractor O.T. 1982, 81-349, dismissed, 1220, 3562, 1402 Bd. Cal., Belmont, 301 324, 331-332, 758, 761-762, 81 1134 (1937). analyzes "whether impairs government's evidentiary weight," according any, effect assessed. He articulated opposing mid-1980's, below (a takes position, Tr. Oral Arg. 38-41). frame "when definitively enforced proceedings technically accrues law," Reply established 1970-1973, dispute, criticizing not, acquiescence authorize intervention here.

Classification Label: 7