SB12 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Linda Coleman-Madison Senator

Democrat

Session

Second Special Session 2015

Title

Corporate income tax, combined reporting of income required, Secs. 40-18-36, 40-18-38, 40-18-38.1 added; Secs. 40-18-1, 40-18-30, 40-18-31, 40-18-39 am'd.

Description

Under current law, each entity, subject to the Alabama corporate income tax, is required to file a separate return and calculate the income tax on its separately accounted for taxable income, regardless whether the entity is part of a larger business that consists of an affiliated group of entities. This filing method allows large corporate taxpayers to take advantage of tax planning options to shift income to other entities within the affiliated group located in tax favorable states.

Most large corporate businesses consist of a parent corporation and a number of corporate subsidiaries.

This bill would amend the corporate income tax law to require the operations of all related entities, involved in a unitary business, file one corporate income tax return on a combined basis, known as combined reporting.

Show more Show less

Subjects

Taxation