Unitary Tax Return States
- Unitary Tax Return means a state income tax return which reflects the combined and/or consolidated reporting (either on a domestic or worldwide basis) of Applied Digital and its affiliates for a state which either (i) imposes an income tax on the apportioned and/or allocable share of the net income...
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Unitary Tax Return means a state income tax return which reflects the combined and/or consolidated reporting (either on a domestic or worldwide basis) of Enron and its affiliates for a state which either (i) imposes its income tax on its apportioned and/or allocable share of the net income and its United States affiliates that are engaged in a "unitary business", part of which is conducted in ...
Sep 26, 2017 · The unitary state income tax is a means by which certain states regulate the collection of income in the form of taxes from companies that do interstate commerce or file consolidated tax returns. While the regulation and requirements vary greatly among states, some generalities may be used to explain the concept.
A state corporate income tax on worldwide income. Although they are unpopular with corporations, unitary taxes are instituted by governments to foil firms that use creative accounting techniques to transfer their income to states or countries with low income-tax rates.
unitary business doctrine is the disregarding of separate legal entities. While only a handful of states impose the unitary business doctrine, those that do have generated significant controversy in the past 20 to 30 years. Unitary and Separate Return States In these states that have adopted the unitary concept (companies with a
Under a unitary tax system, the profits of the various branches of an enterprise or the various corporations of a group are calculated as if the entire group is a unity.
The key point in determining the state income tax for a company conducting interstate commerce is how the unitary business concept applies to the computation of taxable income. For example, the apportionment of income between business and nonbusiness income typically depends upon how a state applies the unitary business concept.
locations. In order to evaluate the taxpayer’s determination of a unitary relationship, state auditors must look beyond accounting and tax return information. Auditors must annually determine how a taxpayer and its affiliates operate at a fairly detailed level to determine which affiliates are unitary.
Combined reporting is a state tax filing method where members of a commonly controlled group of businesses, called a unitary group, are required to combine the profits it earned in every state. The unitary group's combined net income is used to calculate its total worldwide earnings which is taxed as income by each state in which it operates.