North Carolina draft amended legislation would limit Secretary's forced combination powers

The North Carolina General Assembly recently proposed legislation to clarify when the North Carolina Department of Revenue may require combined reporting. Specifically, a discussion draft version of Senate Bill 739 released by the Senate Finance Committee proposes modifications to N.C.G.S. 105-130.6 that would limit the Secretary's authority to require a combined return to those instances where other reasonable means to accurately report the taxpayer's net income are ineffective and would create a rebuttable presumption that a combined return is not required if a corporation and members of its unitary group "comply with the economic substance doctrine," among other changes. [S.B. 739, referred to Committee on Finance, 4/20/11]