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May/June 2016 – BizVoice/Indiana Chamber

27

for that interim study. “It’s important for the Legislature to fully understand the impacts

that their changes to the state’s tax code will have on Indiana businesses,” stresses Susan

Sordelet, the group’s associate director of tax compliance and planning.

There were two aspects of the original legislation that concerned Zimmer Biomet.

One was the “possibility of subjecting not only non-Indiana income but non-U.S.

income to Indiana income tax under certain circumstances and/or exceptions.

“Under most circumstances, only income earned in Indiana should be subjected to

Indiana income tax,” Sordelet offers.

Mark Bilodeau, associate director, tax audit, at Zimmer Biomet, explains the other pitfall.

“Apportioning income and utilizing losses and credits on effectively a separate

company basis (per the Hershman legislation) creates the possibilities of ignoring proper

elimination of intercompany transactions and mismatching combined group/return

concepts with separate company reporting,” he begins.

“This could result in too much income being unfairly apportioned and subjected to

Indiana income tax, and an arbitrary limitation on the utilization of losses and credits by

only certain members of the ‘combined’ group.”

The good news is that “we have the interim study to fully air many of these

concerns,” Waltz concludes.

“Making Indiana a mandatory combined reporting state is not the only way to deal

with the issues raised by Sen. Hershman. Hopefully, we also get good, objective

information brought forth that will help policymakers better understand the potential

consequence of such a significant change in tax policy.”

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© Paws.

RESOURCES:

Susan Sordelet and Mark Bilodeau, Zimmer Biomet, at

www.zimmerbiomet.com

| Bill Waltz, Indiana Chamber, at

www.indianchamber.com

Indiana Vision

2025: Attractive

Business Climate

The 13 goals in this broad-

based driver of the Indiana Chamber’s long-range

economic development plan include areas related

to taxes and pensions, government reform,

regulatory and legal environment and more.

Among those goals (related stories beginning on

Page 14):

• Preserve and enhance a Top 5 ranking among

all states for Indiana’s legal environment

• Attain a Top 5 ranking among all states for

Indiana’s business regulatory environment

• Contain health care costs through patient-

directed access and outcomes-based incentives

• Streamline and make consistent the

administration of the state’s tax code

• Promote the enactment of a federal solution to

the Internet sales/use tax dilemma

Visit

www.indianachamber.com/2025

to learn more.