6540630, 12C-1.013 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 6540630

Notice of Proposed Rule

Department:

DEPARTMENT OF REVENUE

Division:

Corporate, Estate and Intangible Tax

Chapter:

CORPORATE INCOME TAX

Overview

RULE:

12C-1.013	Adjusted Federal Income Defined
12C-1.068	Intangible Tax Credit; Additional Tax Due (Repealed)

PURPOSE:

The purpose of the proposed amendments to Rule 12C-1.013, F.A.C. (Adjusted Federal Income Defined), is to remove provisions that were held invalid by the First District Court of Appeal in Golden West Financial Corp. et al. v. Fla. Dept. of Revenue, 975 So. 2d 567 (1st Fla. DCA Feb. 19, 2008). Pursuant to this decision, corporations are permitted to share Florida net operating loss carryovers on a consolidated return.
Section 220.68, F.S., previously allowed financial organizations to take a credit for the amount of intangible tax paid against the amount of the franchise tax due. Section 8, Chapter 98-132, L.O.F., provides that the tax credit is no longer available for tax years beginning after December 31, 1999. The repeal of Rule 12C-1.068, F.A.C. (Intangible Tax Credit; Additional Tax Due), will remove the rule provisions regarding this tax credit.

SUMMARY:

The proposed amendments to Rule 12C-1.013, F.A.C. (Adjusted Federal Income Defined), remove paragraphs (14)(j) and (k). Under these paragraphs, corporations that incurred losses when filing on a separate Florida return basis were prohibited from sharing those losses with members of their affiliated group when electing to file on a Florida consolidated basis.
The proposed repeal of Rule 12C-1.068, F.A.C. (Intangible Tax Credit; Additional Tax Due), removes the provisions regarding the tax credit previously authorized under Section 220.68, F.S., for tax years beginning on or before December 31, 1999.

RULEMAKING AUTHORITY:

213.06(1), 220.51 FS.

LAW:

220.02(3), 220.03(5), 220.13, 220.131(1), 220.43(1), (3), 220.68 FS, s. 127, Chapter 91-112, s. 8, Chapter 98-132, L.O.F.

PRINT PUBLISH DATE:

12/19/2008 Vol. 34/51

COMMENTS:

From 12/19/2008 To 1/9/2009 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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