Software—Service Distinction 'Clouds' Sales Tax Application

, New York Law Journal

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In his Tax Appeals Tribunal column, Joseph Lipari, a partner at Roberts & Holland, writes: For obvious reasons, tax departments do not wish to exempt cloud computing products from imposition of sales tax. However, it is often difficult to conclude that these products fall within the statutory definitions needed to subject them to tax. A recent determination by an administrative law judge illustrates some of the problems faced.

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