HRS § 237-20 — Principles applicable in certain situations


§237-20 Principles applicable in certain
situations. A person or company having shareholders or members (a
corporation, association, group, trust, partnership, joint adventure, or other
person) is taxable upon its business with them, and they are taxable upon their
business with it. A person or company, whether or not called a cooperative,
through which shareholders or members are pursuing a common objective (for
example, the obtaining of property or services for their individual businesses
or use, or the marketing of their individual products) is a taxable person, and
such facts do not give rise to any tax exemption or tax benefit except as
specifically provided. Even though a business has some of the aspects of
agency it shall not be so regarded unless it is a true agency. The
reimbursement of costs or advances made for or on behalf of one person by
another shall not constitute gross income of the latter, unless the person
receiving such reimbursement also receives additional monetary consideration
for making such costs or advances.