North Carolina would require formal rule adoption before Secretary can assert its authority to adjust intercompany transactions or force combination

On May 30, 2012, the North Carolina Senate Finance Committee approved a proposal that would require the Secretary of Revenue to adopt a rule before exercising its authority to make adjustments or require combination where there is a finding that an intercompany transaction lacks economic substance. If enacted, the legislation would supersede a Department of Revenue directive that interpreted the Secretary's authority in this sphere.