Partner Ted Bernert is quoted in an article published on Aug. 9, 2021, by Law360’s “Tax Authority.” The article “Apple Appeals Ohio Tax on 3rd-Party Apps, E-Books” reports on a tax assessment against Apple by Ohio over sales of third-party e-books anf apps sold over its App Store. Apple contends that the state improperly counted sales to distribution centers as taxable intercompany transactions.
Bernert told Law360 that the contractual language quoted in the notice includes a reference to an agency relationship between Apple and the third parties and it appeared that the tax department didn’t have the contract when issuing the assessment.
“It may be that the case will focus on facts rather than a new legal issue,” Bernert said when asked whether other courts have analyzed if an agency relationship existed between Apple or other companies that sell digital content from third parties.
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