California Tax Developments - February 2014

Happy 2014! The start of the New Year invites a look back on highlights from the past year. In case you missed it, here's a recap of what happened in the great Golden State during the last quarter of 2013.

1. Cases to Watch

After a trial that included 19 days of testimony before the Los Angeles Superior Court, closing briefs were filed in Comcon Prod. Services I, Inc. v. Franchise Tax Board ("Comcast").¹ Two issues were before the court: (1) whether Comcast and its subsidiary QVC formed a unitary business, and (2) whether the termination fee Comcast received from MediaOne as the result of a failed merger generated business income apportionable to California, or nonbusiness income allocable outside California.