nowhere income

Noun

nowhere income (uncountable)

1. (US) Income that is generated in the United States by a corporation but that is not taxed by the destination US state (the state in which a buyer, for example, is based), due to the state not having the jurisdiction to tax the corporation.
   • The bill seems to me, and I have not had a very careful reading of it, but it looks like a tax exemption for big business and it looks to me like it will assuredly create additional nowhere income for income tax purposes for corporations that are doing business in most of the States.1979, Byron Dorgan, quotee, “Panel of State Tax Commissioners: Byron Dorgan, State Tax Commissioner, State of North Dakota, and Roboert Corcoran, Deputy Director, Department of Revenue, State of...
   • In fact, the Congressional Research Service found, in its report on the issue of a physical presence nexus standard, that in many instances corporations could in fact produce large quantities of nowhere income, meaning that it is not taxed anywhere.2006, Dan Bucks, quotee, “Statement of Michael Mundaca, Partner, Ernst & Young, LLP, National Tax Department, International Tax Services, Washington, DC”, in How Much Should Borders Matter? Tax...