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- How States Determine a Unitary Business for Taxation
The unitary business principle is the fundamental legal concept that allows states to tax a fraction of a multi-state corporation’s total global or national income This method arose historically to prevent corporations from using separate legal entities and internal transactions to shift profits out of higher-tax states The primary goal is to ensure that a business pays corporate income
- 5 Key Takeaways: Unitary Business Principle | Kilpatrick . . .
Some states use separate company rules, and others use combined reporting for taxes The unitary business principle helps decide which companies or parts of companies are included when
- 5 KEY TAKEAWAYS Unitary Business Principle - ktslaw. com
addressed the theoretical underpinning of the unitary business principle and discussed the application of the unitary business principle in both unitary and separate company states and key U S Supreme Court decisions concerning the unitary business principle
- Unitary Business: Understanding Its Legal Definition | US . . .
In legal terms, a business is considered unitary if its operations within a state are dependent on or contribute to its operations outside that state The term "unitary business" is often used in tax law, particularly in discussions about corporate taxation and apportionment of income across states
- Decoding Combination: What Is a Unitary Business
Under this test, if the operation of a portion of the business done within the state depends on or contributes to the operation of the business outside the state, the operations are unitary
- Instant Unity: A critical concept in state tax - RSM US
Three states (California, Illinois and New Mexico) recognize that instant unity is possible provided that the indicia of a unitary business are present
- DEMYSTIFYING STATE AND LOCAL TAX
In this article, the first in a series on combined reporting, the authors discuss the rules courts have used for finding a unitary business and offer strategies for taxpayers that may or may not want to establish a unitary business for tax purposes
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