Section 15.20.355. Adjustments to intercompany transactions.

	(a)  The department will, in its discretion, adjust the transfer price of any goods or services transferred to or from a water's edge combined group corporation and an affiliate not in the water's edge combined group as follows:  
		(1) if the transferor corporation had more than 10 percent of its transfers during the tax year to nonaffiliated corporations, the department will, in its discretion, use the average price at which the goods or services were sold to nonaffiliated corporations; and  
		(2) if the transferor corporation had 10 percent or less of its transfers during the tax year to nonaffiliated corporations, the department will, in its discretion, require that the net income attributable to the transfers be apportioned to the transferor and the transferee based on book inventory costs.  
	(b)  If the department determines that a transfer between affiliated corporations was intended to decrease or increase a corporation's factors, the department will, in its discretion, attribute the sales, property, or payroll of the corporation to the affiliated corporation which, if not for the transfer, would have reported the factors.  
	(c)  Nothing in this section precludes adjustments by the department under Internal Revenue Code section 482 (26 U.S.C. 482) or AS 43.19.010, Article IV, sec. 18.  

Authorities

43.05.080;43.19.010;43.20.021;43.20.145;01.05.031;43.20.073;44.62.125

Notes

Authority

AS 43.05.080 AS 43.19.010 Art. IV, _ 18, Ak Const. AS 43.20.021 AS 43.20.145 Editor's note: In 2012 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 43.20.073 as AS 43.20.145. As of Register 204 (January 2013), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 15 AAC 20.355, so that the citation to former AS 43.20.073 now refers to the renumbered statute, AS 43.20.145.

History

Eff. 7/9/93, Register 127; am 3/6/98, Register 145

References

15.20.355