Section 11-605. Reports

1.  Every corporation having an officer, agent or
  representative within the  city,  shall  annually  on  or  before  March
  fifteenth,  transmit  to  the commissioner of finance a report in a form
  prescribed by the commissioner (except that a corporation which  reports
  on  the  basis of a fiscal year shall transmit its report within two and
  one-half months after the close of its fiscal year), setting forth  such
  information  as  the  commissioner  of  finance  may prescribe and every
  taxpayer which ceases to do business in the city or to be subject to the
  tax imposed by this subchapter shall transmit  to  the  commissioner  of
  finance  a report on the date of such cessation or at such other time as
  the commissioner may require covering each year or period for  which  no
  report  was  theretofore  filed. Every taxpayer shall also transmit such
  other reports and such facts and  information  as  the  commissioner  of
  finance  may  require  in  the  administration  of  this subchapter. The
  commissioner of finance may grant a reasonable  extension  of  time  for
  filing reports whenever good cause exists.
    With  respect  to taxable years ending prior to December thirty-first,
  nineteen hundred sixty-six, the returns required to be  made  and  filed
  pursuant  to  this  section  shall  be  made  and filed on or before the
  fifteenth day of the third month following the  close  of  such  taxable
  year  or  September  eleventh,  nineteen hundred sixty-six, whichever is
  later.
    * An automatic extension of six months for the filing  of  its  annual
  report  shall  be allowed any taxpayer if, within the time prescribed by
  either of  the  preceding  paragraphs,  whichever  is  applicable,  such
  taxpayer  files  with  the  commissioner  of  finance an application for
  extension in such form as the commissioner may prescribe  by  regulation
  and  pays  on  or  before  the  date  of such filing the amount properly
  estimated as its tax.
    * NB Amended L.L. 64/85 § 1, language juxtaposed per Ch. 907/85 § 14
    2. Every report shall have annexed  thereto  a  certification  by  the
  president,   vice-president,   treasurer,   assistant  treasurer,  chief
  accounting officer or another officer of the taxpayer duly authorized so
  to act to the effect that the statements contained therein are true.  In
  the  case  of  an  association, within the meaning of paragraph three of
  section (a) of section seventy-seven hundred one of the internal revenue
  code,  a  publicly-traded  partnership  treated  as  a  corporation  for
  purposes  of the internal revenue code pursuant to section seventy-seven
  hundred four thereof and any business conducted by a trustee or trustees
  wherein interest or ownership is  evidenced  by  certificates  or  other
  written instruments, such certification shall be made by any person duly
  authorized  so  to  act  on  behalf of such association, publicly-traded
  partnership or business. The fact that an individual's name is signed on
  a certification of the report shall be prima facie  evidence  that  such
  individual is authorized to sign and certify the report on behalf of the
  corporation.   Blank   forms  of  reports  shall  be  furnished  by  the
  commissioner of finance, on application, but failure to  secure  such  a
  blank  shall  not  release any corporation from the obligation of making
  any report required by this subchapter.
    2-a.  The  commissioner  of  finance  may  prescribe  regulations  and
  instructions  requiring  returns  of information to be made and filed in
  conjunction with the reports required  to  be  filed  pursuant  to  this
  section,  relating  to payments made to shareholders owning, directly or
  indirectly, individually or in the aggregate, more than fifty percent of
  the issued capital stock  of  the  taxpayer,  where  such  payments  are
  treated  as payments of interest in the computation of entire net income
  reported on such reports.

    3. If the amount of taxable income, alternative minimum taxable income
  or other basis  of  tax  for  any  year  of  any  taxpayer,  or  of  any
  shareholder  of  any  taxpayer  which  has  elected  to  be  taxed under
  subchapter s of chapter one of the  internal  revenue  code  or  of  any
  shareholder  of  any taxpayer with respect to which an election has been
  made to  be  treated  as  a  qualified  subchapter  s  subsidiary  under
  paragraph  three of subsection (b) of section thirteen hundred sixty-one
  of the internal revenue code, as returned to the United States  treasury
  department or the New York state commissioner of taxation and finance is
  changed  or  corrected  by the commissioner of internal revenue or other
  officer of the United States or  the  New  York  state  commissioner  of
  taxation   and   finance  or  other  competent  authority,  or  where  a
  renegotiation of a contract or subcontract with the United States or the
  state of New York results in a change  in  taxable  income,  alternative
  minimum  taxable  income or other basis of tax, or where a recovery of a
  war loss results in a computation or recomputation of any tax imposed by
  the United States or the state of New York, or if  a  taxpayer  or  such
  shareholder  of  a  taxpayer,  pursuant  to  subsection  (d)  of section
  sixty-two hundred thirteen of the  internal  revenue  code,  executes  a
  notice  of waiver of the restrictions provided in subsection (a) of said
  section, or if a taxpayer, or such shareholder of a  taxpayer,  pursuant
  to  subsection  (f)  of  section one thousand eighty-one of the tax law,
  executes a notice of waiver of the restrictions provided  in  subsection
  (c)  of  said  section,  such  taxpayer  shall  report  such  changed or
  corrected taxable income, alternative minimum taxable  income  or  other
  basis of tax, or the results of such renegotiation, or such computation,
  or  recomputation,  or  such  execution of such notice of waiver and the
  changes or corrections of the  taxpayer's  federal  or  New  York  state
  taxable income, alternative minimum taxable income or other basis of tax
  on which it is based, within ninety days (or one hundred twenty days, in
  the  case  of  a taxpayer making a combined report under this subchapter
  for such year) after such execution or the final determination  of  such
  change   or   correction  or  renegotiation,  or  such  computation,  or
  recomputation, or as required by the commissioner of finance, and  shall
  concede  the  accuracy  of  such  determination  or  state wherein it is
  erroneous. The allowance of a tentative carryback adjustment based  upon
  a net operating loss carryback or net capital loss carryback pursuant to
  section  sixty-four hundred eleven of the internal revenue code shall be
  treated as a final determination for purposes of this  subdivision.  Any
  taxpayer  filing  an amended return with such department shall also file
  within ninety days thereafter an amended report with the commissioner of
  finance.
    4. (a)  Any  taxpayer  which  owns  or  controls  either  directly  or
  indirectly  substantially  all  the  capital  stock of one or more other
  corporations, or substantially all the capital stock of which  is  owned
  or  controlled  either  directly  or  indirectly  by  one  or more other
  corporations or by interests which own or  control  either  directly  or
  indirectly  substantially  all  the  capital  stock of one or more other
  corporations, (hereinafter referred to in  this  paragraph  as  "related
  corporations"),  shall  make  a  combined  report  covering  any related
  corporations if there are substantial intercorporate transactions  among
  the  related  corporations,  regardless  of  the transfer price for such
  intercorporate  transactions.  It  is  not  necessary  that   there   be
  substantial  intercorporate transactions between any one corporation and
  every other related corporation. It is necessary, however, that there be
  substantial intercorporate  transactions  between  the  taxpayer  and  a
  related   corporation   or,   collectively,  a  group  of  such  related

  corporations. The  report  shall  set  forth  such  information  as  the
  commissioner of finance may require.
    In   determining   whether   there   are   substantial  intercorporate
  transactions,  the  commissioner  shall  consider   and   evaluate   all
  activities   and   transactions   of   the   taxpayer  and  its  related
  corporations.  Activities  and  transactions  that  will  be  considered
  include,  but  are  not  limited  to:  manufacturing, acquiring goods or
  property, or performing  services,  for  related  corporations;  selling
  goods  acquired  from  related  corporations; financing sales of related
  corporations;  performing  related  customer   services   using   common
  facilities  and  employees  for related corporations; incurring expenses
  that benefit, directly or indirectly, one or more related  corporations;
  and  transferring  assets, including such assets as accounts receivable,
  patents or trademarks from one or more related corporations.
    (1) No taxpayer may be permitted to make a report on a combined  basis
  covering  any  such  other  corporations where such taxpayer or any such
  other  corporation  allocates  in  accordance   with   clause   (A)   of
  subparagraph six of paragraph (a) of subdivision three of section 11-604
  of  this subchapter and such taxpayer or any such other corporation does
  not so allocate.
    (2) No taxpayer may be permitted to make a report on a combined  basis
  covering  any  such  other  corporations where such taxpayer or any such
  other corporation allocates in accordance  with  subparagraph  seven  of
  paragraph  (a) of subdivision three of section 11-604 of this subchapter
  and such taxpayer or any such other corporation does not so allocate.
    (3) Except as provided in the first  undesignated  paragraph  of  this
  subdivision,  no combined report covering any corporation not a taxpayer
  shall be required unless the commissioner of finance deems such a report
  necessary, because of  inter-company  transactions  or  some  agreement,
  understanding,  arrangement  or  transaction  referred to in subdivision
  five of this section, in order properly to  reflect  the  tax  liability
  under this subchapter.
    (4) A corporation organized under the laws of a country other than the
  United  States  shall not be required or permitted to make a report on a
  combined basis.
    (5)(i)  For  purposes  of  this  subparagraph,   the   term   "closest
  controlling  stockholder"  means the corporation that indirectly owns or
  controls over fifty percent of the voting stock of  a  captive  REIT  or
  captive  RIC,  is  subject  to  tax  under  this subchapter or otherwise
  required to be included in a combined report under this subchapter,  and
  is the fewest tiers of corporations away in the ownership structure from
  the  captive  REIT  or  captive  RIC.  The commissioner is authorized to
  prescribe  by  regulation  or  published  guidance  the   criteria   for
  determining the closest controlling stockholder.
    (ii)  A  captive  REIT or a captive RIC must be included in a combined
  report with the corporation that directly owns or  controls  over  fifty
  percent  of  the voting stock of the captive REIT or captive RIC if that
  corporation is subject to tax or required to be included in  a  combined
  report under this subchapter.
    (iii)  If  over fifty percent of the voting stock of a captive REIT or
  captive RIC is not directly owned or controlled by a corporation that is
  subject to tax or required to be included in  a  combined  report  under
  this  subchapter,  then the captive REIT or captive RIC must be included
  in  a  combined  report  with  the  corporation  that  is  the   closest
  controlling  stockholder  of  the  captive  REIT  or captive RIC. If the
  closest controlling stockholder of the captive REIT or  captive  RIC  is
  subject to tax or otherwise required to be included in a combined report

  under  this  subchapter,  then  the  captive REIT or captive RIC must be
  included in a combined report under this subchapter.
    (iv)  If  the  corporation  that  directly owns or controls the voting
  stock of the captive REIT or captive RIC is  described  in  subparagraph
  one,  two  or  four  of this paragraph as a corporation not permitted to
  make a combined report, then the provisions  in  clause  (iii)  of  this
  subparagraph  must  be  applied  to  determine  the corporation in whose
  combined report the captive REIT or captive RIC should be included.  If,
  under  clause  (iii)  of  this subparagraph, the corporation that is the
  closest controlling stockholder of the captive REIT or  captive  RIC  is
  described  in  subparagraph  one,  two  or  four  of this paragraph as a
  corporation  not  permitted  to  make  a  combined  report,  then   that
  corporation  is  deemed  to  not  be  in  the ownership structure of the
  captive REIT or captive RIC, and  the  closest  controlling  stockholder
  will be determined without regard to that corporation.
    (v)  If  a  captive REIT owns the stock of a qualified REIT subsidiary
  (as defined in paragraph two of subsection (i) of section eight  hundred
  fifty-six  of  the  internal  revenue  code),  then  the  qualified REIT
  subsidiary must be included in a combined report with the captive REIT.
    (vi) If a captive REIT  or  a  captive  RIC  is  required  under  this
  subparagraph   to   be  included  in  a  combined  report  with  another
  corporation, and that other corporation is also required to be  included
  in  a  combined  report with another related corporation or corporations
  under this paragraph, then the captive REIT or the captive RIC  must  be
  included in that combined report with those corporations.
    (vii)  If  a  captive  REIT  or  a  captive  RIC is not required to be
  included in a combined report with another corporation under clause (ii)
  or (iii) of this  subparagraph,  or  in  a  combined  return  under  the
  provisions  of  subparagraph  (v) of paragraph two of subdivision (f) of
  section 11-646 of this chapter, then the captive REIT or captive RIC  is
  subject  to  the opening provisions of this paragraph and the provisions
  of subparagraph three of this paragraph. The captive REIT or captive RIC
  must be included in a combined report under this subchapter with another
  corporation  if  either  the  substantial  intercorporate   transactions
  requirement   in  the  opening  provisions  of  this  paragraph  or  the
  inter-company transactions or agreement, understanding,  arrangement  or
  transaction  requirement  of  subparagraph  three  of  this paragraph is
  satisfied and more than fifty percent of the voting stock of the captive
  REIT or the captive RIC and substantially all of the  capital  stock  of
  that other corporation are owned and controlled, directly or indirectly,
  by the same corporation.
    (b)(1)(i)  In  the case of a combined report the tax shall be measured
  by the combined entire  net  income  or  combined  capital  of  all  the
  corporations  included  in  the  report,  including  any captive REIT or
  captive RIC; provided, however, in no event shall the  tax  measured  by
  combined  capital  exceed  the limitation provided for in paragraph F of
  subdivision one of section 11-604 of this subchapter.
    (ii) In the case of a captive REIT or captive RIC required under  this
  subdivision  to be included in a combined report, entire net income must
  be computed as required under  subdivision  seven  (in  the  case  of  a
  captive  REIT)  or  subdivision  eight (in the case of a captive RIC) of
  section 11-603  of  this  chapter.  However,  the  deduction  under  the
  internal  revenue code for dividends paid by the captive REIT or captive
  RIC to any member of the affiliated group that includes the  corporation
  that  directly or indirectly owns over fifty percent of the voting stock
  of the captive REIT or captive RIC shall  not  be  allowed  for  taxable
  years  beginning  on or after January first, two thousand nine. The term
  "affiliated group"  means  "affiliated  group"  as  defined  in  section

  fifteen hundred four of the internal revenue code, but without regard to
  the exceptions provided for in subsection (b) of that section.
    (2)  In  computing combined entire net income intercorporate dividends
  shall be eliminated,  in  computing  combined  business  and  investment
  capital  intercorporate  stock  holdings and intercorporate bills, notes
  and  accounts  receivable   and   payable   and   other   intercorporate
  indebtedness  shall  be  eliminated and in computing combined subsidiary
  capital intercorporate stockholdings shall be eliminated.
    5. In case it shall appear to the commissioner  of  finance  that  any
  agreement,  understanding or arrangement exists between the taxpayer and
  any other corporation or any  person  or  firm,  whereby  the  activity,
  business,  income  or  capital  of  the  taxpayer  within  the  city  is
  improperly or inaccurately reflected, the  commissioner  of  finance  is
  authorized and empowered, in its discretion and in such manner as it may
  determine,  to  adjust  items  of income, deductions and capital, and to
  eliminate assets in computing any allocation  percentage  provided  only
  that  any income directly traceable thereto be also excluded from entire
  net income, so as equitably to determine the tax. Where (a) any taxpayer
  conducts its activity or business under any  agreement,  arrangement  or
  understanding in such manner as either directly or indirectly to benefit
  its  members  or  stockholders, or any of them, or any person or persons
  directly or indirectly interested  in  such  activity  or  business,  by
  entering  into  any transaction at more or less than a fair price which,
  but for such agreement, arrangement or understanding,  might  have  been
  paid or received therefor, or (b) any taxpayer, a substantial portion of
  whose  capital  stock  is owned either directly or indirectly by another
  corporation, enters into any transaction with such other corporation  on
  such terms as to create an improper loss or net income, the commissioner
  of finance may include in the entire net income of the taxpayer the fair
  profits,  which,  but  for such agreement, arrangement or understanding,
  the taxpayer might have derived from such transaction.
    6. An action may be brought at any time by the corporation counsel  at
  the  instance  of  the  commissioner  of finance to compel the filing of
  reports due under this subchapter.
    7. Reports shall be preserved for five years, and thereafter until the
  commissioner of finance orders them to be destroyed.
    8. Where the state tax commission changes  or  corrects  a  taxpayer's
  sales and compensating use tax liability with respect to the purchase or
  use  of  items  for which a sales or compensating use tax credit against
  the tax imposed by this chapter was claimed, the taxpayer  shall  report
  such  change  or correction to the commissioner of finance within ninety
  days of the final determination of such  change  or  correction,  or  as
  required  by the commissioner of finance, and shall concede the accuracy
  of such determination or state wherein it  is  erroneous.  Any  taxpayer
  filing  an  amended  return or report relating to the purchase or use of
  such items shall also file within ninety days thereafter a copy of  such
  amended return or report with the commissioner of finance.