Alaska Administrative Code
Title 15 - Revenue
Chapter 20 - Alaska Net Income Tax
Article 3 - Corporate Net Income Tax; Combination and Apportionment Rules
15 AAC 20.355 - Adjustments to intercompany transactions

Universal Citation: 15 AK Admin Code 15 AAC 20.355

Current through August 30, 2024

(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.

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.

Authority:AS 43.05.080

AS 43.19.010

AS 43.20.021

AS 43.20.145

Art. IV, § 18,

Ak Const.

Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.