SB67 Alabama 2017 Session

Under current law, each entity, subject to the Alabama corporate income tax, is required to file a separate return and calculate the income tax on its separately accounted for taxable income, regardless whether the entity is part of a larger business that consists of an affiliated group of entities. This filing method allows large corporate taxpayers to take advantage of tax planning options to shift income to other entities within the affiliated group located in tax favorable states

Most large corporate businesses consist of a parent corporation and a number of corporate subsidiaries

This bill would amend the corporate income tax law to require the operations of all related entities, involved in a unitary business, file one corporate income tax return on a combined basis, known as combined reporting

To amend Sections 40-18-1, 40-18-30, 40-18-31, and 40-18-39, as last amended by Act 2016-412, 2016 Regular Session, Code of Alabama 1975, relating to income tax, to require the operations of all related entities, involved in a unitary business, to file one corporate income tax return on a combined basis, known as combined reporting; to implement combined reporting by requiring that a business report, on a combined basis, the operations of all related entities involved in a unitary business.