Tax Law Changes - North Carolina Department Of Revenue - 2012 Page 19
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41A transaction has economic substance if the transaction, or series of transactions, has
one or more reasonable business purposes other than for the creation of State income
tax benefits and has economic effects beyond the creation of State income tax benefits.
In determining whether transactions between affiliates are not at fair market value, the
Secretary must apply the standards contained in the regulations adopted under section
482 of the Code.
A corporation or noncorporate entity is part of the affiliated group if more than 50% of
the voting stock or ownership interest is directly or indirectly owned or controlled by a
common owner, or by one or more of the member corporations or noncorporate entities.
The following entities will not be included in a combined return:
1. A corporation not required to file a federal income tax return.
2. An insurance company, other than a captive insurance company.
3. A corporation exempt from taxation under section 501 of the Code.
4. An S corporation.
5. A foreign corporation as defined in section 7701 of the Code, other than a
domestic branch.
6. A partnership, limited liability company, or other entity not taxed as a corporation.
7. A corporation with at least 80% of its gross income from all sources in the tax
year being active foreign business income as defined in section 861(c)(1)(B) of
the Code in effect as of July 1, 2009.
(Effective January 1, 2012; HB 619, s. 2, S.L. 11-390.)
G.S. 105-130.6 – Subsidiary and Affiliated Corporations Repealed: This section
was repealed.
(Effective January 1, 2012; HB 619, s. 1, S.L. 11-390.)
G.S. 105-130.14(1) – Conforming Change; Corporations Filing Consolidated
Returns for Federal Income Tax Purposes: A corporation which elects or is required
to file a federal consolidated return must file a single entity return for State income tax
purposes except in specific circumstances. This subsection was amended to replace
the reference to G.S. 105-130.6, which was repealed by S.L. 11-390, with G.S. 105-
130.5A, Secretary‟s Authority to Adjust Net Income or Require a Combined Return.
(Effective June 26, 2012, SB 826, s. 1.14.(c), S.L.12-79)
G.S. 105-130.14(2) – Conforming Change; Corporations Filing Consolidated
Returns for Federal Income Tax Purposes: A corporation which elects or is required
to file a federal consolidated return must file a single entity return for State income tax
purposes except in specific circumstances. This subsection, which permitted a
combined return when the taxpayer‟s facts and circumstances met those set out in a
rule adopted by the Department pursuant to G.S. 105-130.6, was repealed by
13
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Form E-505 - Tax Law Changes - North Carolina Department Of Revenue - 2012
Financial
Form D-422 - Underpayment Of Estimated Tax By Individuals - North Carolina Department Of Revenue - 1998
Financial
North Carolina Department Of Revenue (form Nc 8633) Application To Participate In The Electronic Filing Program
Financial
Form E-585s - Incentive Claim For Refund State And County Sales And Use Taxes Form - North Carolina Department Of Revenue - North Carolina
Financial
Form Nc-478b - 2012 Tax Credit Investing In Machinery And Equipment - North Carolina Department Of Revenue
Financial
Instructions For Form Nc-478 Series - Summary Of Tax Credit Limited To 50% Of Tax - North Carolina Department Of Revenue
Financial
Related Categories
Parent category: Financial