Tax Type
Corporation Income Tax
Description
Telecommunication company; Gross receipts
Topic
Computation of Tax
Date Issued
10-23-1991
October 23, 1991
Re: Corporation Income Tax: Telecommunications Companies
Virginia Regulation Section 630-3-400.1
Dear******************
This is in reply to your letter of July 25, 1990 in which you request guidance in determining components to be included in the gross receipts amount used in computing the minimum tax under Va. Code §58.1-400.1, and whether the minimum tax based on gross receipts can be passed on to the subscribers of a telecommunications company.
Va. Code §58.1-400.1(C) specifies that "The State Corporation Commission shall certify annually to the Department the . . .gross receipts (emphasis added) for each telecommunications company." Therefore, the SCC, not the Department of Taxation, determines the components of gross receipts.
The SCC is responsible for determining whether the minimum tax computed under Chapter 3 is surchargeable under your existing tariff or other agreement filed with Virginia. It is my understanding that it is generally permissible to pass on the minimum tax to subscribers, but you should confirm the facts of your particular situation with the SCC.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/4508G
Rulings of the Tax Commissioner