Meaning of nowhere income | Babel Free

Definitions

Income that is generated in the United States by a corporation but that is not taxed by the destination US state (the state in which a buyer, for example, is based), due to the state not having the jurisdiction to tax the corporation.

US, uncountable

Examples

“The bill seems to me, and I have⟳ not had a very careful reading of it, but it looks like⟳ a tax exemption for big business and it looks to me like⟳ it will assuredly create⟳ additional nowhere income for income tax purposes for corporations that are doing business in most of the States.”

“In fact, the Congressional Research⟳ Service found, in its report⟳ on the issue⟳ of a physical presence nexus standard, that in many instances corporations could in fact produce⟳ large quantities of nowhere income, meaning that it is not taxed anywhere.”

“A number⟳ of states use⟳ throwback rules to eliminate the nowhere income that arises because of P.L. 86-272.”

CEFR level