Tax Type
Corporation Income Tax
Description
Residency
Topic
Taxpayers
Date Issued
11-05-1999
November 5, 1999
Re: Request for Ruling: Income Tax
Dear*****
This will reply to your request on behalf of your client (the "Taxpayer') for a ruling regarding how commercial domicile is determined in Virginia.
FACTS
The Taxpayer is a business which is incorporated in, and has an office in the District of Columbia ("D.C.'). All of the Taxpayer's operating revenues are derived from activities conducted within Virginia. The principal officers of the Taxpayer work in both Virginia and D.C. Given these facts, the Taxpayer has requested a ruling to determine its commercial domicile and what the factors are that the department uses to determine whether a business is commercially domiciled in Virginia.
DETERMINATION
The Virginia Administrative Code ("VAC') provides a definition for "commercial domicile.' 23 VAC 10-120-140(D) states, *****
In determining commercial domicile, consideration must be given to all of a company's attendant circumstances including, but not limited to, the actual seat of corporate governance, where management functions, where administrative policies are developed, where board of directors meetings are held, where officers perform their duties, where production capacity is determined, where prices are set, where orders are accepted, where purchasing occurs, where salaries are determined, where payroll checks are issued from, and such other factors as may be reasonably deemed necessary to determine commercial domicile. A company's commercial domicile must be determined with reference to all of the facts and circumstances of the particular case. No single factor is dispositive in determining commercial domicile.
In the Taxpayer's case, the information provided is insufficient for making a conclusive determination concerning commercial domicile. The Taxpayer should consider the factors given above in determining the state of its commercial domicile.
This ruling has been made subject to the facts presented to the department as summarized above. Any change in these facts or the introduction of facts by another party may lead to a different result. If you have any additional questions regarding this ruling, please feel free to call ***** in the Office of Tax Policy at *****
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/25397G
Re: Request for Ruling: Income Tax
Dear*****
This will reply to your request on behalf of your client (the "Taxpayer') for a ruling regarding how commercial domicile is determined in Virginia.
FACTS
The Taxpayer is a business which is incorporated in, and has an office in the District of Columbia ("D.C.'). All of the Taxpayer's operating revenues are derived from activities conducted within Virginia. The principal officers of the Taxpayer work in both Virginia and D.C. Given these facts, the Taxpayer has requested a ruling to determine its commercial domicile and what the factors are that the department uses to determine whether a business is commercially domiciled in Virginia.
DETERMINATION
The Virginia Administrative Code ("VAC') provides a definition for "commercial domicile.' 23 VAC 10-120-140(D) states, *****
-
"Commercial domicile means the state in which is located the principal office from which the business affairs of the corporation are normally directed or managed. The commercial domicile will normally be the location of the headquarters office of the corporation. If the corporation has no office then the commercial domicile may be where the officers, directors and shareholders regularly meet or where the principal officer or majority shareholder/officer conducts the affairs of the corporation, depending upon the facts and circumstances.'
In determining commercial domicile, consideration must be given to all of a company's attendant circumstances including, but not limited to, the actual seat of corporate governance, where management functions, where administrative policies are developed, where board of directors meetings are held, where officers perform their duties, where production capacity is determined, where prices are set, where orders are accepted, where purchasing occurs, where salaries are determined, where payroll checks are issued from, and such other factors as may be reasonably deemed necessary to determine commercial domicile. A company's commercial domicile must be determined with reference to all of the facts and circumstances of the particular case. No single factor is dispositive in determining commercial domicile.
In the Taxpayer's case, the information provided is insufficient for making a conclusive determination concerning commercial domicile. The Taxpayer should consider the factors given above in determining the state of its commercial domicile.
This ruling has been made subject to the facts presented to the department as summarized above. Any change in these facts or the introduction of facts by another party may lead to a different result. If you have any additional questions regarding this ruling, please feel free to call ***** in the Office of Tax Policy at *****
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/25397G
Rulings of the Tax Commissioner