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Huge Price Tag Looms As Food Lion Loses Tax Dispute With State Of North Carolina PDF Print E-mail
State Government
By Administrator   
Monday, 27 August 2012 12:43

RALEIGH, (SGRToday.com) - An eight-year legal battle has come to a close with the North Carolina Court of Appeals ruling for the state Department of Revenue and against the parent corporation of grocery chain Food Lion.

 
The ruling against Delhaize America Inc. means the corporation was dinged for roughly $17 million in taxes and $3 million in penalties. According to the Triangle Business Journal (TBJ), Delhaize already made a partial payment, which reduces the amount owed to just under $14 million.
 
The dispute dates back to 2004 when the Department of Revenue decided that the corporation's decision to organize as several separate entities was done mostly to circumvent North Carolina income taxes. 
 
Tax rates vary from state to state and TBJ reports the Appeals Court ruling could put other corporations on notice if they have done something similar.
 
Delhaize is based in Salisbury. A company spokesperson told TBJ they are reviewing the decision and weighing options.
Last Updated on Monday, 27 August 2012 12:53
 
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