MICROSOFT CORPORATION v. FRANCHISE TAX BOARD

Filed 8/17/06 (This opinion precedes companion case, S127086, also filed 8/17/06)

IN THE SUPREME COURT OF CALIFORNIA

MICROSOFT CORPORATION, )

)

Plaintiff and Respondent, )

) S133343

v. )

) Ct.App. 1/3 A105312

FRANCHISE TAX BOARD, )

) City and County of San Francisco

Defendant and Appellant. ) Super. Ct. No. 400444

_______________________________________ )

Continue from Part I ………

II. Section 25137: Fair Representation of Microsoft's Business Activity

A. The scope of section 25137

Our conclusion that the full redemption price constitutes gross receipts does not end matters. The UDITPA includes a relief provision for dealing with any unreasonable calculations rote application of the three-factor formula may yield. Section 25137 provides: â€