Advance Release Opinions – Supreme Court – September 28

Review of a Connecticut Supreme Court advance release opinion about taxation.

Taxation

Dish Network, LLC v. Commissioner of Revenue Services – Dispute over whether earnings from DVR services and sale/lease/installation/maintenance of equipment were subject to taxation under the statute taxing gross earnings from transmitting satellite TV programming, and whether Dish Network, after failing to challenge audit results, could nonetheless challenge the amount of the tax for the audited periods using a tax overpayment procedure. Trial court said that the overpayment procedure was appropriate notwithstanding Dish Network’s failure to challenge the audit; earnings from DVR services were subject to taxation; and earnings from sale/lease/installation/maintenance of equipment were not. Dish Network appealed and commissioner cross-appealed. Supreme Court affirmed the conclusions that (1) a taxpayer can seek a refund through the overpayment procedure even if taxpayer failed to challenge audit; and (2) earnings from sale/lease/installation/maintenance of equipment are not taxable. Supreme Court reversed the conclusion that earnings from DVR services are taxable.