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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RESOURCES:
Susan Sordelet and Mark Bilodeau, Zimmer Biomet, at
www.zimmerbiomet.com| Bill Waltz, Indiana Chamber, at
www.indianchamber.comIndiana 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/2025to learn more.