New York — Franchise Tax — Receipts from website advertising allocated to state where viewed.
The taxpayer, which is a service company located
in New York, sponsors a website for physician advertising
and offers a risk participation program whereby it arranges
for the provision of medical services to be performed by
a third party physician. According to the Department of Taxation
and Finance, revenue from the taxpayer's website advertising
services must be allocated to New York based on the ratio
of persons who view or read the advertisements in New York
compared to the number of persons who view or read the advertisements
everywhere. If the taxpayer cannot determine the location
of its advertisement viewers, then it may use a reasonable
method to estimate the ratio, subject to the approval of
the Department. Further, receipts from the taxpayer's risk
participation program must be allocated to New York based
on the percentage of receipts from medical services performed
in New York. ( New York Advisory Opinion TSB-A-09(8)C, 06/16/2009
.)
Document Title: RIA Daily Updates
Checkpoint Source: News
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