Judge denies giant tax refund-Wal-Mart says state owes it $30 million

[Omaha Steve]

http://www.newsobserver.com/front/story/861773.html

David Ranii, Staff Writer
A Wake County judge has rejected Wal-Mart's bid to obtain a $30 million tax refund from the state.

In a ruling Friday, Judge Clarence Horton Jr. turned back the giant retailer's argument that the state improperly assessed its corporate income tax bill for the four fiscal years that ended Jan. 31, 2002. Instead, the judge agreed with the state Department of Revenue's contention that Wal-Mart was trying to game the system by using tax shelters that sought to obfuscate the retailer's "true earnings" in North Carolina.

"We are pleased with the ruling in the Wal-Mart case because it validates the Department's position that taxes must be applied fairly and equitably to everyone who lives or does business in our state," spokeswoman Kim Brooks said. "This isn't just a victory for the Department of Revenue, it is really a victory for every North Carolina taxpayer."

Wal-Mart hasn't decided whether to appeal, spokesman John Simley said.

"Because of the possibility of an appeal," he added, "we won't comment on the details of the case. However, we believe that all taxpayers should have the right to rely on clearly defined tax laws that are reasonably and fairly enforced."

The state's legal victory won't mean a windfall for the state. Wal-Mart already has paid the taxes it owed, plus interest and penalties assessed by the state, and was seeking a refund.

FULL story at link.

[dbackjon]

1. Good - now go after other tax-dodgers!

[NC_Nurse]

2. Excellent. Walmart sucks.