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Bill > H2647


MA H2647

MA H2647
Reforming economic substance rules


summary

Introduced
01/23/2017
In Committee
01/23/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

190th General Court

Bill Summary

For legislation to authorize the Commissioner of the Department of Revenue to disallow the asserted tax consequences of certain transactions. Revenue.

AI Summary

This bill authorizes the Commissioner of the Department of Revenue to disallow the asserted tax consequences of certain transactions. The bill requires the taxpayer to demonstrate by a preponderance of the evidence that the transaction changes the taxpayer's economic position in a meaningful way, apart from state income tax consequences, and that the taxpayer has a substantial non-state-tax purpose for entering into the transaction. The bill also clarifies that the Commissioner's authority to make tax adjustments is not limited or negated by this provision. The bill takes effect on January 1, 2017.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Accompanied a study order, see H4244 (on 02/22/2018)

bill text


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