Tag Archives: CAT

ILN Today Post

Your claim has been declined

In July 2017, the Competition Appeal Tribunal (CAT) refused to approve the proposed £14 billion class action claim against MasterCard on behalf of 46.2 million consumers who purchased goods or services from UK businesses which accepted MasterCard between 1992 and 2008.  The claim followed on from the EU Commission finding in 2007 that MasterCard’s default interchange fee (the fee charged between banks when processing card payments) was an anti-competitive agreement in breach of article 101 of the Treaty on the Functioning of the European Union, and resulted in higher fees being charged between acquiring banks.

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ILN Today Post

Ohio: Challenge to imposition of the CAT on out-of-state retailers settles

The Buckeye State imposes a commercial activity tax (CAT) for the privilege of doing business in the state, as measured by a company’s gross receipts from Ohio consumers. All businesses with $500,000 or more in annual sales to Ohio consumers are subject to the CAT.

In the case Crutchfield Corp. v. Testa, internet retailers Crutchfield, Newegg, and Mason Companies all challenged the CAT under the dormant Commerce Clause doctrine and Due Process Clause of the U.S. Constitution; at issue was the collective sum of more than $200,000 in taxes, interest and penalties. Their position was that they should not be subject to the CAT because they have no physical presence in Ohio.

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