Fujitsu IT Holdings, Inc. v. Franchise Tax Board

Opinion

RUVOLO, J.

I

INTRODUCTION

Amdahl Corporation (Amdahl), 1 a multinational business, sought a refund of $3,390,388 in taxes arising from assessments by the Franchise Tax Board (FTB) for the tax years 1988, 1989, 1991 and 1992. In the underlying tax refund action, Amdahl alleged that the FTB improperly assessed taxes against it for these years based on its erroneous treatment of dividends distributed by Amdahl’s first-tier and second-tier subsidiaries. Specifically, Amdahl claimed that the FTB: 1) incorrectly treated tax credit payments from Amdahl’s United Kingdom subsidiaries as…