Tax Type
Corporation Income Tax
Description
Permission to File a Consolidated Return
Topic
Returns/Payments/Records
Date Issued
01-02-1990
January 2, 1990
Re Virginia Code §58.1-442
Permission to File a Consolidated Return
Dear******************
This is in reply to your letter dated July 6, 1989, in which you request that the Department of Taxation modify the ruling issued May 22, 1989 (Public Document 89-165), to allow the Parent corporation to be included in the consolidated income tax return filed for the taxable period August 4, 1988 through December 31, 1988, and taxable years thereafter.
DETERMINATION
Virginia Code §58.1-442 authorizes the filing of a consolidated or a combined return for affiliated corporations when each corporation is itself subject to Virginia income tax and each meets certain criteria. Based upon the available facts at the time that the May 22, 1989, ruling was issued, it did not appear that the Parent was separately subject to Virginia income tax; therefore, permission to join in the filing of a consolidated Virginia income tax return with its subsidiaries was denied.
However, based upon the representations made in your July 6, 1989 letter, Parent has both income and property that is subject to Virginia income tax. Accordingly, permission is granted for Parent corporation to be included in the consolidated income tax return filed for the taxable period August 4, 1988, through December 31, 1988 and taxable years thereafter.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner