California – Technology Transfer Agreement – Lucent Wins TTA

ZSA Special Report – During a recent sales and use tax symposium in Monterey, California, the Lucent case(s) regarding Technology Transfer Agreements (See ZSA Special Report – August 5, 2013) were rumored to have been decided.

According to a LinkedIn posting by Jim Kuhl, Tax Consultant Expert at the Office of George Runner (Second District Board of Equalization) – “Lucent Technologies wins big over California Board of Equalization…judge grants Lucents motion for summary judgement declaring that no triable issues remain…”

A continued win by the taxpayers (Nortel and Lucent) on this issue sets the stage for a volume of potential refund requests and prospective taxability decisions.  As the details of this judgment develop we will continue to monitor the Board of Equalization reaction and guidance to impacted taxpayers.