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Article: Court rules against Raytheon in sales-tax caseCourt rules against Raytheon on refunds for federal work ; Says refunds are not justified for expenses tied to federal work
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- November 11, 2009
- Author:
CopyrightCopyright 2009 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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As it turns out, Raytheon's toilet paper is not tax-exempt, after
all.
The highest court in Massachusetts yesterday ruled that the
Waltham-based defense company and other contractors should not get
refunds for sales taxes paid on expenses related to work done for
the federal government. Courts in other states had allowed such
refunds.
The ruling by the Supreme Judicial Court bars Raytheon from
collecting about $700,000 plus interest from the state Department of
Revenue - taxes the company paid on items bought in Massachusetts
in 2001 and 2002 as part of its work for the US government. Among
the purchases: printer toner, cellphone service, a jukebox,
promotional items such as lapel pins and ...