You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

Kimberly-Clark loses bid to lower Mass. taxes

The maker of Kleenex and Huggies lost a bid Friday to reduce its state tax bill in Massachusetts.

A state appellate court panel upheld earlier rulings by the commissioner of Revenue and appellate tax board denying Kimberly-Clark Corp.’s bid to reduce its corporate excise taxes by $2.6 million from 2001 to 2003.

Continue reading below

Kimberly-Clark, a Fortune 500 consumer products maker based in Dallas, had asked the court to let it write off certain expenses, including royalty and other payments to related corporate entities. But tax officials argued the company had structured its business — and created the related payments — simply to reduce its tax bill, something not allowed under the law.

“The record ultimately provided little support for an argument that the transactions in question had a legitimate business purpose or ‘economic substance apart from the asserted tax benefit’,” wrote Associate Justice Joseph A. Trainor in the decision. “Rather, the record and the board’s findings supported the conclusion that tax avoidance was ‘a principal purpose’ of the transactions.”

The company declined to comment.

Todd Wallack can be reached at twallack@globe.com. Follow him on Twitter @twallack.
Loading comments...
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.