Do you clearly understand what your company’s responsibilities are when it comes to state taxes? The Finance Committee this week unanimously approved two measures to make Connecticut’s business tax policy more predictable and consistent.
One measure, SB 1213, clarifies the standard by which Connecticut taxpayers must prove their case in court. Recent court decisions have left Connecticut businesses up in the air on the issue, but the Finance Committee’s vote clears up the matter.
SB 1213 makes it clear that the standard of proof in tax cases where there is no allegation of fraud is a “preponderance of the evidence” and not “clear and convincing evidence,” which usually applies only in cases involving civil fraud or other serious instances in which a very high degree of certainty is required.
Another proposal, SB 1214, lets taxpayers know when (and therefore when they are not) liable for taxes on work performed by nonresident contractors. This is very important because there is little public awareness of the nonresident contractor laws, which creates a difficulty for property owners who might not have regular dealings with construction contracts. CBIA appreciates the work of the state Department of Revenue Services for its work on this proposal and for bringing it to the attention of the Finance Committee.
While all Connecticut taxpayers are helped by a predictable, clear and consistent tax environment, this is especially so for businesses. It’s critically important for businesses to know exactly what their tax responsibilities are so they can meet their obligations and plan ahead with confidence.
CBIA applauds the Finance Committee for moving Connecticut closer to a better tax environment that will only encourage more business investment in the state
For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 or email@example.com.