Tax Type
Corporation Income Tax
Description
Alternate allocation method
Topic
Allocation and Apportionment
Date Issued
04-29-1993
April 29, 1993
Re: Request for Ruling: Corporate Income
Dear***********
This will reply to your letter dated September 15, 1992, in which you request a ruling allowing the use of an alternative method of allocation for******* (the "Taxpayer").
FACTS
The Taxpayer sold some property in North Carolina at a gain. North Carolina considered the gain non-business income allocable to North Carolina. As such, the gain was taxed at 100% in North Carolina. In Virginia, the gain was considered ordinary income and apportioned in Virginia. The Taxpayer believes this constitutes double taxation and requests permission to use an alternative allocation method.
DETERMINATION
The policies which apply to requests for an alternate method under Va. Code §58.1-421 are well established. See VR 630-3-421 (copy enclosed). The use of an alternate method is allowed only in extraordinary circumstances where the need for relief has been demonstrated by clear and cogent evidence. After considering the facts set forth, I find that you have not demonstrated that the statutory method is unconstitutional or inapplicable as applied in your situation.
Accordingly, your request is denied.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner