In a recent unpublished decision, Residuary Trust A v. Director, Division of Taxation (Kassner), the New Jersey Appellate Division relied on the “square corners doctrine” to hold that the New Jersey Division of Taxation was prohibited from imposing tax for the 2006 tax year based on a policy change not announced until 2011. In other words, even though the assessment may have been supported by the statute, the court determined that it would be unfair to assess the tax.
In their article for State Tax Notes, Sutherland attorneys Leah Robinson, Open Weaver Banks and Amy F. Nogid describe the New Jersey square corners doctrine, which prevents the government from achieving or retaining an unfair bargaining or litigation advantage.
View the full article reprinted from the September 14, 2015, issue of State Tax Notes.