15 AAC 21.040. Attribution of income

(a) The income, expenses and assets of an enterprise involving undivided joint ownership must be attributed to the joint owners of that enterprise on the basis of their respective ownership interests, as may be modified by agreement among those joint owners. For purposes of this section, partnerships, joint ventures, trusts with joint beneficiaries and similar legal entities (but not a corporation) are enterprises involving undivided joint ownership.

(b) If a corporation doing business in the state conducts, through one or more noncorporate intermediaries, operations that generate income for those intermediaries which would make them subject to tax under AS 43.21 and this chapter if they were corporations, then that corporation is presumed to derive income from those operations in the amount of the income earned by those intermediaries and therefore subject to tax under this chapter. Such a corporation's tax is calculated using the revenues and deductions of the intermediaries, as if the corporation were directly conducting the operations actually conducted by the intermediaries.

History: Eff. 2/22/79, Register 69

Authority: AS 43.05.080

Art. IV, бї 18

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