Indiana Administrative Code — Title 45 (Dept. of State Revenue)
45 IAC 3.1-1-111
Membership in affiliated groups; bank holding companies
Sec. 111. Affiliated Group. The Adjusted Gross Income Tax Act adopts the definition of "affiliated group" contained in Internal Revenue
Code section 1504, except that no member of the affiliated group may be included in the Indiana return unless it has adjusted gross income derived
from sources within the state, as that phrase is defined in IC 6-3-2-2. For purposes of this subsection, "Adjusted Gross Income derived
from sources within the state" means either income or losses derived from activities within the state.
Domestic International Sales Corporations (DISC'S) which are prohibited under the Internal Revenue Code from filing consolidated returns
may not be included in the affiliated group for Indiana adjusted gross income tax purposes.
If any bank is a member of an affiliated group for Federal income tax purposes, it cannot be included as an affiliated member for Indiana
adjusted gross income tax purposes, since the banking entity is not subject to the adjusted gross income tax. Any gross income tax liability of a bank
must be added separately after the composite tax of the affiliated group has been computed. For supplemental net income tax purposes, the members
of an affiliated group, including the banking entity, may compute the supplemental net income tax on a consolidated basis. Since banks are not
included in the consolidation under the Adjusted Gross Income Tax Act, a separate schedule must accompany the consolidated return in order to
compute the adjusted gross income of the affiliated group and subsequently the supplemental net income tax liability.
In the case of a bank holding company, the holding company may be allowed a special deduction for dividends received from its banking
entity for Indiana adjusted gross income tax purposes in accordance with section 243(a)(1) of the Internal Revenue Code. The 100% dividend
exclusion for those holding companies filing a consolidated return does not apply since, for Indiana adjusted gross income tax purposes, the banking
entity is not taxable under the Act and thus cannot be part of the consolidation.
Amendment history
(Department of State Revenue; Reg 6-3-4- 14(020); filed Oct 15, 1979, 11:15 am: 2 IR 1552; errata, 2 IR 1743)
Source: view the official text
Nearby sections (25 sections)
- 3.1-1-99 · Withholding for church and clergy
- 3.1-1-100 · Withholding from certain types of employees and incomes
- 3.1-1-101 · Annual reconciliation of employers' withholding tax
- 3.1-1-102 · Changes in form WH-4
- 3.1-1-103 · Refund or credit for excess withholding
- 3.1-1-104 · Information returns (Repealed)
- 3.1-1-105 · Annual return of partnership or trust fund
- 3.1-1-106 · Partner's distributive share
- 3.1-1-107 · Partnership withholding requirements
- 3.1-1-108 · Partnership withholding returns
- 3.1-1-109 · Withholding requirements for subchapter S corporations
- 3.1-1-110 · Consolidated returns of affiliated groups
- 3.1-1-111 · Membership in affiliated groups; bank holding companies
- 3.1-1-112 · Consolidated returns for other taxes not required
- 3.1-1-113 · Withholding on distributions to nonresident beneficiaries…
- 3.1-1-114 · Withholding returns and payments by trusts and estates
- 3.1-1-115 · Reciprocal agreement states
- 3.1-1-116 · Credit against liability instead of refund (Repealed)
- 3.1-1-117 · Payment of refunds; interest (Repealed)
- 3.1-1-118 · Demand for additional taxes (Repealed)
- 3.1-1-119 · Penalty for nonpayment (Repealed)
- 3.1-1-120 · Penalty for fraudulent nonpayment (Repealed)
- 3.1-1-121 · Failure to timely file or pay; penalty (Repealed)
- 3.1-1-122 · Jeopardy assessment and collection (Repealed)
- 3.1-1-123 · Penalty for failure to file information returns (Repealed)