- Aramark Corporation incurred costs for its customer’s benefit that would be reimbursed by the customer.
- In states with a tax on gross receipts, the reimbursement may be included as taxable revenue if not structured properly.
- Aramark filed a refund claim to exclude amounts reimbursed by customers under its management fee contract.
- The state denied the claim because Aramark failed to establish that it acted as its customers’ agent.
- Ohio’s regulation states that in a principal-agent relationship, the agent has the legal authority to act on behalf of the principal.
- Aramark’s contracts with customers did not provide agency authority.
Source: aprio.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
