New York ~ Corporate Income, Insurance Taxes: Combined Reporting Regulation Amendments Adopted

The New York Department of Taxation and Finance has adopted amendments to the corporate franchise, bank franchise, and insurance franchise tax regulations to update rules and codify the department’s interpretations regarding combined reports. Among the changes made by the amendments are the following:

 

-elimination of discretionary language relating to when a combined report is permitted or required; this has been replaced with rules addressing when a combined report is required or permitted due to the presence or absence of substantial intercorporate transactions among related corporations;

 

-addition of language to the capital stock requirement providing that, for purposes of measuring the 80% stock ownership/control requirement, such ownership will be determined based on the total voting power, rather than the total number of shares of stock owned;

 

-changes derived from TSB-M-08(2)C, e.g., new language providing a list of activities and transactions that are considered in determining whether substantial intercorporate transactions exist;

 

-clarification that corporations organized under the laws of a country other than the U.S. may not be included in a combined report;

 

-addition of new §6-2.7 providing examples that illustrate when a combined report is required or permitted; and

 

-deletion of language requiring that all corporations in a combined group use the same accounting period.

 

The amendments apply to taxable years beginning on or after January 1, 2013.

 

Reg. Parts 3, 6, 21, and 33, New York Department of Taxation and Finance, applicable as noted

 

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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