FIRST DATA CORP. v. DEPT. OF REVENUE

No. 1 CA-TX 11-0008.

313 P.3d 548 (2013)

FIRST DATA CORPORATION; 440 Insurance Agency of Massachusetts, Inc.; 440 Insurance Agency, Inc.; Actuarial Computer Technology, Inc.; American Rapid Corporation; Applied Mailing Systems, Inc.; Atlantic Bankcard Properties Corporation; Atlantic States Bankcard, Inc.; B1 Pt Services, Inc.; Bankcard Investigative Group, Inc.; Basin Finance Company; Business Office Services, Inc.; Callteleservices, Inc.; Cashtax, Inc.; Cesi Holdings, Inc.; Credit Performance, Inc.; Dabco Computer Services, Inc.; DM Holdings, Inc.; Donnelley Funding, Inc.; Donnelley Marketing Consumer Promotions, Inc.; Donnelley Marketing Holdings, Inc.; Donnelley Marketing, Inc.; Eastern States Monetary Services, Inc.; EBP Life Insurance Company; FDC International, Inc.; FDC International Partner, Inc.; FDMS/UMS Partner, Inc.; FDR Interactive Technologies Corporation; FDR Ireland Limited; FDR Limited; FDR Missouri, Inc.; FDR Signet, Inc.; FDWYCO, Inc.; First Data Capital, Inc.; First Data Communications Corporation; First Data Digital Certificates, Inc.; First Data Distributors, Inc.; First Data Information Management Group, Inc.; First Data Integrated Services, Inc.; First Data Investor Services Group, Inc.; First Data Latin America Inc.; First Data Merchant Services Corporation; First Data Pittsburg Alliance Partner, Inc.; First Data Pos, Inc.; First Data Resources Canada, Inc.; First Data Resources, Inc.; First Data Services, Inc.; First Data Technologies, Inc.; First Data Tennessee, Inc.; First Financial Bank; First Financial Management Corporation; FSM Services, Inc.; Hogan Information Services Company; Innovis Data Solutions, Inc.; Integrated Payment Systems, Inc.; International Banking Technologies, Inc.; IPS Card Solutions, Inc.; IPS Holdings, Inc.; IPS, Inc.; NA Insurance Services, Inc.; NT Distributors, Inc.; Orlandi Valuta, Inc.; Orlandi Valuta 2 Nacional, Inc.; Pension Marketing, Inc.; Shared Global Systems, Inc.; Southern Telecheck, Inc.; Technology Solutions International, Inc.; Telecheck Holdings, Inc.; Telecheck International, Inc.; Telecheck Pittsburg/West Virginia, Inc.; Telecheck Recovery Services, Inc.; Telecheck Services, Inc.; Telecheck Services Canada, Inc.; Telecheck Services of Puerto Rico, Inc.; United States Pension Services, Inc.; Western Union Communications, Inc.; Western Union Financial Services, Inc.; Western Union Financial Services Eastern Europe, Ltd.; Western Union Holdings, Inc.; Western Union Industrial Bank, Plaintiffs/Appellants, v. ARIZONA DEPARTMENT OF REVENUE, Defendant/Appellee.

Court of Appeals of Arizona, Division 1.

November 26, 2013.


Attorney(s) appearing for the Case

Steptoe & Johnson, LLP By Pat Derdenger , Bennett Evan Cooper , Phoenix, Counsel for Plaintiffs/Appellants.

First Data Corporation and Its Combined Subsidiaries Arizona Attorney General's Office, By Kimberly Cygan , Phoenix, Counsel for Defendant/Appellee.

Bade Baskin Richards, PLC, By William A. Richards and Multistate Tax Commission, Washington, D.C. By Shirley Sicilian , Burce J. Fort , Tempe, Counsel for Amicus Curiae Multistate Tax Commission.


OPINION

GEMMILL, Judge.

¶ 1 First Data Corporation ("Taxpayer") challenges the Arizona Tax Court's holding that gains from the sale of a wholly-owned subsidiary are business income on its Arizona combined income tax return. Taxpayer challenges the interpretation of "business income" adopted by the Arizona Department of Revenue ("Department") and the tax court. We resolved a related issue presented in Harris Corp. v. Ariz. Dep't of Revenue, 233...

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