(a) If the allocation and apportionment provisions of this Act do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the Secretary of the Department of Finance and Administration may require, in respect to all or any part of the taxpayer's business activity, if reasonable:(1) separate accounting;(2) the inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state; or(3) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.
(1) separate accounting;
(2) the inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state; or
(3) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.
(b) (1) If the allocation and apportionment provisions of this Act do not fairly represent the extent of business activity in this state of taxpayers engaged in a particular industry or in a particular transaction or activity, the secretary, in addition to the authority provided in subsection (a) of this section, may establish appropriate rules for determining alternative allocation and apportionment methods for the taxpayers.(2) A rule adopted under this subsection shall be applied uniformly, except that with respect to any taxpayer to which the rule applies, the taxpayer may petition for or the secretary may require an adjustment under subsection (a) of this section.
(1) If the allocation and apportionment provisions of this Act do not fairly represent the extent of business activity in this state of taxpayers engaged in a particular industry or in a particular transaction or activity, the secretary, in addition to the authority provided in subsection (a) of this section, may establish appropriate rules for determining alternative allocation and apportionment methods for the taxpayers.
(2) A rule adopted under this subsection shall be applied uniformly, except that with respect to any taxpayer to which the rule applies, the taxpayer may petition for or the secretary may require an adjustment under subsection (a) of this section.
(c) The party petitioning for or the secretary requiring the use of any method to effectuate an equitable allocation and apportionment of the taxpayer's income under subsection (a) of this section shall prove that the:(1) Allocation and apportionment provisions of this Act do not fairly represent the extent of the taxpayer's business activity in this state; and(2) Alternative to the allocation and apportionment provisions of this Act is reasonable.
(1) Allocation and apportionment provisions of this Act do not fairly represent the extent of the taxpayer's business activity in this state; and
(2) Alternative to the allocation and apportionment provisions of this Act is reasonable.
(d) The same burden of proof shall apply whether the taxpayer is petitioning for or the secretary is requiring the use of any reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income.
(e) Notwithstanding subsection (d) of this section, if the secretary demonstrates that in any two (2) of the prior five (5) tax years the taxpayer used an allocation or apportionment method at variance with the allocation or apportionment method or methods the taxpayer used for the other tax years, then the secretary shall not bear the burden of proof in imposing a different allocation or apportionment method under subsection (a) of this section.
(f) If the secretary requires a different allocation or apportionment method under subsection (a) of this section to effectuate an equitable allocation and apportionment of the taxpayer's income, the secretary shall not impose a civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of this Act.
(g) A taxpayer that has received written permission from the secretary to use a reasonable method of allocation or apportionment to effectuate an equitable allocation and apportionment of the taxpayer's income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in or a material misrepresentation of the facts provided by the taxpayer upon which the secretary reasonably relied.