Bill > S1727

This bill clarifies the net-worth measure of the corporate excise. It specifies that a corporation's treatment of an item on its books shall be controlling in determining whether it reflects debt or equity, unless the commissioner establishes that such treatment is not in accordance with the accounting standards used by the taxpayer. The bill also allows the commissioner to disallow any unreasonable or improper reserve with respect to the book value of an asset. Additionally, the bill exempts from the corporate excise any item of income of a corporation organized outside the United States that is exempt from U.S. federal income tax by virtue of a tax treaty or otherwise.

Budget and Finance

https://malegislature.gov/Bills/191/S1727