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Rule Title: CONCEPT OF "SUBJECT TO" A TAX
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Department: REVENUE, DEPARTMENT OF
Chapter: CORPORATE MULTISTATE ACTIVITIES
Subchapter: Income Allocation and Apportionment
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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42.26.211    CONCEPT OF "SUBJECT TO" A TAX

(1) A taxpayer is "subject to" one of the taxes specified in 15-31-303, MCA, if it carries on business activities in such state and that state imposes such a tax on the taxpayer.   Any taxpayer that asserts that it is subject to one of the taxes specified in 15-31-303, MCA, in another state shall furnish to the department, upon its request, evidence to support such assertion.   The department may request that such evidence include proof that the taxpayer has filed the requisite tax return in the other state and has paid any taxes imposed under the law of the other state.   The taxpayer's failure to produce such proof may be taken into account in determining whether the taxpayer in fact is subject to one of the taxes specified in 15-31-303, MCA, in the other state.

(2) If the taxpayer voluntarily files and pays one or more of such taxes when not required to do so by the laws of that state, or pays a minimal fee for qualification, for organization, or for the privilege of doing business in that state, but does not actually engage in business activity in that state or does actually engage in business activity, not sufficient for nexus, and the minimum tax bears no relation to the taxpayer's business activity within that state, the taxpayer is not "subject to" one of the taxes specified within the meaning of 15-31-303, MCA.

History: Sec. 15-1-201, 15-31-313, and 15-31-501, MCA; IMP, Sec. 15-1-601 and 15-31-303, MCA; NEW, Eff. 1/2/77; AMD, 1979 MAR p. 1691, Eff. 12/28/79; AMD, 2001 MAR p. 2469, Eff. 12/21/01; AMD, 2002 MAR p. 3708, Eff. 12/27/02.


 

 
MAR Notices Effective From Effective To History Notes
12/27/2002 Current History: Sec. 15-1-201, 15-31-313, and 15-31-501, MCA; IMP, Sec. 15-1-601 and 15-31-303, MCA; NEW, Eff. 1/2/77; AMD, 1979 MAR p. 1691, Eff. 12/28/79; AMD, 2001 MAR p. 2469, Eff. 12/21/01; AMD, 2002 MAR p. 3708, Eff. 12/27/02.
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