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

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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.



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