Skechers’ $1 Million Tax Challenge Skipped by Wisconsin Justices

Skechers USA Inc. failed to convince the Wisconsin Supreme Court to review a decision that it owed about $1.1 million in franchise tax for transferring intellectual property to a holding company with the sole intention of evading taxes.

Skechers told the justices that the case was an opportunity to provide guidance regarding the sham transaction doctrine, which evaluates whether a company completed a transaction for tax evasion purposes. But the revenue department said a ruling wouldn’t have wide application because state laws already govern illusory transactions.

Skechers created holding company Skechers USA Inc. II in 1999 and transferred its domestic ...