Section 1515. Returns

(a) Every taxpayer and every other foreign and alien
  insurance corporation having an employee, including any officer, in this
  state or  having  an  agent  or  representative  in  this  state,  shall
  annually,  on  or  before the fifteenth day of the third month following
  the close of its taxable year, transmit to the tax commission  a  return
  in  a  form  prescribed  by it setting forth such information as the tax
  commission may prescribe and every taxpayer which ceases to exercise its
  franchise or to be subject to the tax  imposed  by  this  article  shall
  transmit to the tax commission a return on the date of such cessation or
  at  such other time as the tax commission may require covering each year
  or period for which no return was theretofore  filed.  A  copy  of  each
  return  required under this subdivision shall also be transmitted to the
  superintendent of insurance at or before the times specified for  filing
  such returns with the tax commission.
    (b)  Every  taxpayer  shall  also transmit such other returns and such
  facts  and  information  as  the  tax  commission  may  require  in  the
  administration of this article.
    (c)  The  tax  commission may grant a reasonable extension of time for
  filing returns whenever good cause exists. An automatic extension of six
  months for the  filing  of  its  annual  return  shall  be  allowed  any
  taxpayer,  if  within  the  time  prescribed  by  subdivision  (a), such
  taxpayer files with the tax commission an application for  extension  in
  such  form  as  said  commission may prescribe and pays on or before the
  date of such filing the amount properly estimated as its tax.
    (d) Every return shall have annexed thereto  a  certification  by  the
  president,   vice   president,  treasurer,  assistant  treasurer,  chief
  accounting officer or any other officer of the taxpayer duly  authorized
  so  to act to the effect that the statements contained therein are true.
  The fact that an individual's name is signed on a certification  of  the
  return  shall be prima facie evidence that such individual is authorized
  to sign and certify the return on behalf of the corporation.
    (e)  Report  of  changed  or  corrected  federal   income   or   final
  determination  of  refund  or  credit  of  retaliatory  taxes  or  other
  charges.-- (1) If the amount  of  the  life  insurance  company  taxable
  income  (which  shall  include,  in  the  case of a stock life insurance
  company which has an existing policyholders surplus account, the  amount
  of  direct  and  indirect  distributions  during  the  taxable  year  to
  shareholders from such account), taxable  income  of  a  partnership  or
  taxable  income,  as  the  case  may  be, or alternative minimum taxable
  income for any year of any taxpayer as returned  to  the  United  States
  treasury  department  is  changed  or  corrected  by the commissioner of
  internal revenue  or  other  officer  of  the  United  States  or  other
  competent authority, such taxpayer shall report such change or corrected
  taxable  income or alternative minimum taxable income within ninety days
  (or one hundred twenty days, in the case of a taxpayer making a combined
  return under this article for such year) after the  final  determination
  of  such  change  or  correction or as required by the commissioner, and
  shall concede the accuracy of such determination or state wherein it  is
  erroneous.  Any  taxpayer  filing an amended return with such department
  shall also file within ninety days (or one hundred twenty days,  in  the
  case  of a taxpayer making a combined return under this article for such
  year) thereafter an amended return with  the  commissioner  which  shall
  contain   such  information  as  the  commissioner  shall  require.  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 or upon an
  operations loss carryback pursuant to section eight hundred ten  of  the

  internal  revenue  code,  shall  be treated as a final determination for
  purposes of this subdivision.
    (2)  If  a  taxpayer  has  paid  taxes  to another state pursuant to a
  statute similar to section  one  thousand  one  hundred  twelve  of  the
  insurance  law or any other statute or regulation of another state under
  which retaliatory taxes or other charges were imposed or  assessed,  for
  which  taxes  or  charges  paid  the  taxpayer has been allowed a credit
  pursuant to subdivision (c) of section fifteen hundred  eleven  of  this
  article, and thereafter such taxes or charges are adjudged by a court of
  competent  jurisdiction  or  other  competent  authority  to  have  been
  erroneously paid or illegally or unconstitutionally imposed  and,  after
  exhaustion of all further judicial review there is a final determination
  that  a refund or credit is due the taxpayer, such taxpayer shall report
  such final determination, along with the amount refunded or credited  or
  to  be  refunded  or  credited, within ninety days of its issuance or as
  required by the tax commission.
    * (f) (1) 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  return  with  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  return  shall  set  forth  such  information  as  the
  commissioner may require.
    (2)  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: (i) manufacturing, acquiring goods or
  property, or performing services, for related corporations; (ii) selling
  goods acquired from  related  corporations;  (iii)  financing  sales  of
  related  corporations;  (iv)  performing related customer services using
  common facilities and employees for related  corporations;  (v)  selling
  policies  or  contracts  of  insurance  for  related  corporations; (vi)
  reinsuring risks for related corporations; (vii) collecting premiums  or
  other  consideration for any policy or contract of insurance for related
  corporations;  (viii)  incurring  expenses  that  benefit,  directly  or
  indirectly,  one  or  more  related  corporations  and (ix) transferring
  assets,  including  such  assets  as  accounts  receivable,  patents  or
  trademarks from one or more related corporations.
    (3)  Except  as  provided  in  paragraph  one  of this subdivision, no
  combined return covering any corporation shall be  required  unless  the
  commissioner   deems  such  return  necessary  because  of  intercompany
  transactions  or   some   agreement,   understanding,   arrangement   or
  transaction  referred  to  in  subdivision (g) of this section, in order
  properly to reflect the tax liability under this article.
    (4)(i) For purposes of this paragraph, 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  section  fifteen  hundred  one  of  this  article,
  article  nine-A  or article thirty-two of this chapter or required to be
  included in a combined return or  report  under  this  article,  article
  nine-A or article thirty-two of this chapter, 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
  return  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  a  life  insurance corporation and is subject to tax or
  required to be included in a combined return under this article.
    (iii) If over fifty percent of the voting stock of a captive  REIT  or
  captive  RIC  is  not  directly  owned or controlled by a life insurance
  corporation that is subject to tax or  required  to  be  included  in  a
  combined return under this article, then the captive REIT or captive RIC
  must  be  included  in  a combined report or return 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 a life insurance corporation that is subject to tax or
  required to be included in a combined return under  this  article,  then
  the  captive  REIT  or captive RIC must be included in a combined return
  under this article.
    (iv) 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 any combined return required to be made
  by  the  captive  REIT  that  owns  the  stock  of  the  qualified  REIT
  subsidiary.
    (v)  If  a  captive  REIT  or  a  captive  RIC  is required under this
  paragraph to be included in a combined return with another  corporation,
  and  that  other  corporation  is  required to be included in a combined
  return with another related corporation under this subdivision, then the
  captive REIT or the captive RIC must be included in that combined return
  with the other related corporation.
    (5)(i) In the case of a combined return, the tax shall be measured  by
  the   combined  entire  net  income  or  combined  capital  of  all  the
  corporations included in the  return,  including  any  captive  REIT  or
  captive  RIC.  In  computing  combined  entire net income intercorporate
  dividends shall  be  eliminated,  in  computing  combined  business  and
  investment   capital  intercorporate  stockholdings  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.  No  taxpayer  subject to the tax imposed by section fifteen
  hundred two-a or section fifteen hundred two-b of this  article  may  be
  required or permitted to be included in a combined return.
    (ii)  In the case of a captive REIT required under this subdivision to
  be included in a combined return, "entire net income" means "real estate
  investment  trust  taxable  income"  as  defined  in  paragraph  two  of
  subdivision  (b)  of  section  eight hundred fifty-seven (as modified by
  section eight hundred fifty-eight) of the internal  revenue  code,  plus
  the  amount  taxable under paragraph three of subdivision (b) of section
  eight hundred fifty-seven of that code,  subject  to  the  modifications
  required  by  section fifteen hundred three of this article. In the case
  of a captive RIC required under this subdivision to  be  included  in  a
  combined  return,  "entire net income" means "investment company taxable

  income" as defined in paragraph two of subdivision (b) of section  eight
  hundred  fifty-two  (as modified by section eight hundred fifty-five) of
  the internal revenue code, plus the amount taxable under paragraph three
  of  subdivision  (b)  of  section  eight hundred fifty-two of that code,
  subject to the modifications required by section fifteen  hundred  three
  of  this article. 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. 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.
    * NB Effective until January 1, 2011
    * (f)  (1)  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  return   with   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  return  shall  set  forth  such  information  as the
  commissioner may require.
    (2)  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: (i) manufacturing, acquiring  goods  or
  property, or performing services, for related corporations; (ii) selling
  goods  acquired  from  related  corporations;  (iii)  financing sales of
  related corporations; (iv) performing related  customer  services  using
  common  facilities  and  employees for related corporations; (v) selling
  policies or  contracts  of  insurance  for  related  corporations;  (vi)
  reinsuring  risks for related corporations; (vii) collecting premiums or
  other consideration for any policy or contract of insurance for  related
  corporations;  (viii)  incurring  expenses  that  benefit,  directly  or
  indirectly, one or  more  related  corporations  and  (ix)  transferring
  assets,  including  such  assets  as  accounts  receivable,  patents  or
  trademarks from one or more related corporations.
    (3) Except as provided  in  paragraph  one  of  this  subdivision,  no
  combined  return  covering  any corporation shall be required unless the
  commissioner  deems  such  return  necessary  because  of   intercompany
  transactions   or   some   agreement,   understanding,   arrangement  or
  transaction referred to in subdivision (g) of  this  section,  in  order
  properly to reflect the tax liability under this article. In the case of
  a  combined return, the tax shall be measured by the combined entire net
  income or combined capital of  all  the  corporations  included  in  the
  return. In computing combined entire net income intercorporate dividends
  shall  be  eliminated,  in  computing  combined  business and investment
  capital intercorporate stockholdings 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. No taxpayer subject to
  the  tax  imposed  by  section  fifteen hundred two-a or section fifteen
  hundred two-b of this  article  may  be  required  or  permitted  to  be
  included in a combined return.
    * NB Effective January 1, 2011
    (g)  In case it shall appear to the tax commission 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  state  is  improperly  or
  inaccurately  reflected,  the tax commission 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 items entering
  into the computing of any  allocation  percentage,  provided  only  that
  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  tax
  commission may include in entire net income the fair profits, which, but
  for  such  agreement,  arrangement  or understanding, the taxpayer might
  have derived from such transaction.