Xerox Corp. v. Comptroller of Treasury

This case presents the question whether Maryland taxation of an apportioned amount of certain interest and royalty income earned by a corporation engaged in both interstate and intrastate commerce was proper under relevant statutory and constitutional standards. More specifically, the issue is whether the Comptroller of the Treasury was correct in levying an assessment of additional corporate income tax upon Xerox Corporation for the tax years 1972, 1973 and 1974, based upon inclusion within Xerox’s taxable income of interest earned on loans made to foreign subsidiaries and on royalty income…