ITB 11-42: No intercompany elimination for dividends paid by insurance subsidiary, Oregon Tax Court holds

Insurance Tax Bulletin

A corporation could not eliminate dividends received from its wholly-owned subsidiary, an insurance company, because the insurance subsidiary was excluded from the parent's consolidated Oregon corporation excise (income) tax return, the Oregon Tax Court held. Under Oregon law (ORS 317.710(5)(b)), if an entity is required to use a different apportionment formula than a corporation with which it is affiliated, the entity is not permitted to be included in the same Oregon consolidated return even if it was included in the same federal consolidated return.



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