Utah State Tax Comm'n v. See's Candies, Inc.

Justice Pearce, opinion of the Court:

INTRODUCTION

¶1 See's Candies (See's), a Berkshire Hathaway subsidiary, sold its intellectual property to Columbia Insurance Company, another Berkshire Hathaway subsidiary. In return, See's received shares of Columbia's stock. After the sale, See's was required to pay Columbia to use the See's trade name. See's deducted these royalty payments from its taxable income. A tax commission auditor reviewed See's 1 tax returns and called shenanigans, concluding that the transaction had been structured to permit See's to improperly reduce its taxes. Utah Code…