20 NYCRR § 4-3.6
Reasonable approximation based on general information
# (a)
Where, after meeting the requirements of due diligence, a corporation lacks sufficient information to use the rules for reasonable approximation based on customer information to determine the customer’s primary use location of a digital product or digital service, the corporation must use reasonable approximation based on general information.
# (b)
Definition. Reasonable approximation based on general information is an alternative method used to determine the location at which a customer primarily uses the digital product or digital service in instances in which a general information measurement, such as the general population, a subset of the general population, or some other general metric, reasonably reflects the geographic distribution of the customer’s primary use location.
# (c)
Application of reasonable approximation based on general information.
# (1)
A corporation must use statistical information, based on an appropriate metric, that reasonably approximates where the customers primarily use the digital product or digital service.
# (2)
In any case in which the commissioner determines that the corporation’s method of approximation is not reasonable, the commissioner may substitute another general information measurement that the commissioner determines is appropriate. In this instance, the corporation bears the burden of demonstrating that the method the commissioner prescribes is not reasonable.
# (3)
In any case in which the commissioner determines that the corporation’s method of approximation is reasonable, but that it has not been applied in a consistent manner with respect to similar transactions, the commissioner shall require that the corporation apply its method of approximation in a consistent manner.
# (d)
In any case in which the corporation does not have sufficient information to reasonably approximate based on general information, the corporation must instead source its receipts to where the digital product or service is received using the where received method (see section 4-3.7 of this Subpart).
Source: official source document (DTF adopted rule text, December 2023 corporate reform)
In this part (40 sections)
- 4-1.7 · Federal changes
- 4-2.1 · Receipts and net gains from the sale of tangible personal…
- 4-2.2 · Net gains from the sale of real property
- 4-2.3 · Receipts from rents and royalties
- 4-2.4 · Net income from qualified financial instruments for…
- 4-2.5 · Interest income and net gains from loans
- 4-2.6 · Interest income and net gains from asset backed securities and…
- 4-2.7 · Interest income and net gains from corporate bonds
- 4-2.8 · Net interest income from reverse repurchase agreements and…
- 4-2.9 · Net interest income from Federal funds
- 4-2.10 · Net income from commodities
- 4-2.11 · Marked to market net gains
- 4-2.12 · Interest income, net gains, and other income from other…
- 4-2.13 · Brokerage commissions
- 4-2.14 · Receipts from credit cards and similar activities
- 4-2.15 · Receipts received by credit card processors
- 4-2.16 · Receipts from railroad, trucking and omnibus businesses
- 4-2.17 · Receipts from the sale of advertising
- 4-3.1 · Definitions
- 4-3.2 · General Principles
- 4-3.3 · Special rules for determining primary use location
- 4-3.4 · General rule for determining primary use location
- 4-3.5 · Reasonable approximation based on customer information
- 4-3.6 · Reasonable approximation based on general information
- 4-3.7 · Where received method
- 4-3.8 · Rules for intermediary transactions
- 4-3.9 · Preceding taxable year method
- 4-3.10 · Current taxable year method
- 4-3.11 · Examples
- 4-4.1 · Definitions
- 4-4.2 · General Principles
- 4-4.3 · Special rules for determining where the benefit is received
- 4-4.4 · General rule for determining where the benefit is received
- 4-4.5 · Reasonable approximation based on customer information
- 4-4.6 · Reasonable approximation based on general information
- 4-4.7 · Delivery destination method
- 4-4.8 · Rules for intermediary transactions
- 4-4.9 · Preceding taxable year method
- 4-4.10 · Current taxable year method
- 4-4.11 · Examples