Multistate Restraints on Taxing Jurisdiction - Essay Example

The nexus should deal with each branch individually according to the income generated (Rigos 20). The taxation issue will not be of a huge effect because flick has achieved a state of the art technology (Rigos 22). This technology assists it in the faster production of lighters and at a cheaper price than the competitors against it (Rigos 25). The Flink’s geared effort to save income taxes of the state, this effort has led it to contribute all the intellectual properties it owns to a subsidiary (Rigos 32).

The taxing agency will consider this hence they will not situate the tax at a high level (Rigos 33). The taxing agency should understand that more sales do not imply that the company is earning more money. The taxation agency should be considerate of the money spent by the company (Rigos 35). The rate of income is quite high hence the company’s output rate is remarkably low this means that the tax payment will be of low impact on the company (Rigos 39). The company’s mode of marketing is immensely powerful hence resulting to a lot of income via the sales made (Rigos 39).

The company filling of sales will indicate how the company has been progressing to the taxation agency (Rigos 42). This will make the taxation agency decide what to tax this company thus avoiding over taxation. (Rigos 43) The tax must not be a discriminating element against interstate commerce, and the tax must be relatively fair to the states services provided (Rigos 45). The company got introduced to the internet marketing thus boosting the cigarette lighter sale to a tremendous figure (Rigos 46).

The company pays the other advertising companies money based on the tax amount that can be a result from each click through to the companies link (Rigos 48). Because the tax is enforceable exaction and not a contribution which is voluntary, the company should pay the dues so as to assist in the generation of the state’s