Sec. 12-221a. Petition for alternative method of apportionment. Regulations.
Sec. 12-221a. Petition for alternative method of apportionment. Regulations.
(a) If the method of apportionment prescribed in sections 12-218, 12-218a and 12-219a,
as administered by the Commissioner of Revenue Services and applied to the business
of any company, unfairly attributes to this state an undue proportion of its net income
or minimum tax base, such company may petition for an alternate method of apportionment by filing with its return to the commissioner a statement of its objections and of
such other proposed method of apportionment as it believes proper and equitable under
the circumstances, accompanied by supporting details and proofs. The commissioner,
within a reasonable time thereafter, shall notify the company whether the proposed
method is accepted as reasonable and equitable and, if so accepted, shall adjust the return
and tax accordingly.
(b) With respect to any company subject to the tax imposed under this chapter, the
commissioner, at any time within three years after the due date for the filing of such
return, or in the case of a completed return filed after such due date, within three years
after the date on which such return was received by the commissioner, which return is
based on the method of apportionment provided for in said sections 12-218, 12-218a
and 12-219a, may change such method if, in his opinion, such method has operated or
will operate so as to subject the company to taxation on a lesser portion of its net income
or minimum tax base than is equitably attributable to this state and shall thereupon
proceed to assess and collect taxes in accordance with such method as so changed by
him. On and after January 1, 1995, the commissioner may change such method only in
accordance with regulations establishing standards for such action, which the commissioner may adopt in accordance with the provisions of chapter 54.
(1969, P.A. 258, S. 1; 1971, P.A. 683, S. 4; P.A. 73-350, S. 14, 27; P.A. 77-614, S. 139, 610; P.A. 81-411, S. 3, 42;
May Sp. Sess. P.A. 94-4, S. 8, 85; P.A. 95-160, S. 64, 69; P.A. 96-197, S. 9, 11.)
History: 1971 act substituted "additional tax base" for "minimum tax base"; P.A. 73-350 substituted reference to Secs.
12-218a and 12-219a for reference to repealed Sec. 12-220a; P.A. 77-614 substituted commissioner of revenue services
for tax commissioner, effective January 1, 1979; P.A. 81-411 deleted reference to allocation, effective June 18, 1981, and
applicable to income years commencing on or after December 28, 1980; May Sp. Sess. P.A. 94-4 divided existing section
into Subsecs. (a) and (b) and in Subsec. (b) added provision requiring the adoption of regulations re change in apportionment
methods, effective June 9, 1994; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this
section; P.A. 96-197 amended Subsecs. (a) and (b) re replace "additional" with "minimum" in reference to the tax base,
effective June 3, 1996, and applicable to income years commencing on or after January 1, 1996.
Cited. 202 C. 412. Cited. 236 C. 156.
Under former section, taxpayer could not, on its own initiative, omit filing the return prescribed by statute and file only
a return pursuant to an alternative method which had not yet been accepted or approved by tax commissioner. 26 CS 373.
Cited. 41 CS 271. Cited. 44 CS 90.