§ 105-130.16. Returns. - North Carolina Statutes

§ 105‑130.16.  Returns.

(a)        (Effective fortaxable years beginning before January 1, 2008) Return. – Every corporationdoing business in this State must file with the Secretary an income tax returnshowing specifically the items of gross income and the deductions allowed bythis Part and any other facts the Secretary requires to make any computationrequired by this Part. The return of a corporation must be signed by itspresident, vice‑president, treasurer, assistant treasurer, secretary, orassistant secretary. The officer signing the return must furnish an affirmationverifying the return. The affirmation must be in the form required by theSecretary.

(a)        (Effective fortaxable years beginning on or after January 1, 2008) Return. – Everycorporation doing business in this State must file with the Secretary an incometax return showing specifically the items of gross income and the deductionsallowed by this Part and any other facts the Secretary requires to make anycomputation required by this Part. The return of a corporation must be signedby its president, vice‑president, treasurer, or chief financial officer.The officer signing the return must furnish an affirmation verifying thereturn. The affirmation must be in the form required by the Secretary.

(b)        Correction ofDistortions. – When the Secretary has reason to believe that any corporation soconducts its trade or business in such manner as to either directly orindirectly distort its true net income and the net income properly attributableto the State, whether by the arbitrary shifting of income, through pricefixing, charges for service, or otherwise, whereby the net income isarbitrarily assigned to one or another unit in a group of taxpayers carrying onbusiness under a substantially common control, the Secretary may require anyfacts the Secretary considers necessary for the proper computation of theentire net income and the net income properly attributable to the State, and indetermining these computations, the Secretary must have regard to the fairprofit that would normally arise from the conduct of the trade or business.

(c)        Other Corrections.– When any corporation liable to taxation under this Part conducts its businessin such a manner as to either directly or indirectly benefit the members orstockholders thereof or any person interested in the business by selling itsproducts or goods or commodities in which it deals at less than the fair pricewhich might be obtained therefor, or when a corporation, a substantial portionof whose capital stock is owned either directly or indirectly by anothercorporation, acquires and disposes of the products of the corporation so owninga substantial portion of its stock in such a manner as to create a loss orimproper net income for either of the corporations, or when a corporation,owning directly or indirectly a substantial portion of the stock of anothercorporation, acquires and disposes of the products of the corporation of whichit so owns a substantial portion of the stock in such manner as to create aloss or improper net income for either of the corporations, the Secretary maydetermine the amount of taxable income of the such corporations for thecalendar or fiscal year, having due regard to the reasonable profits which, butfor such arrangement or understanding, might or could have been obtained by thecorporations liable to taxation under this Part from dealing in such products,goods or commodities.  (1939, c. 158, s. 326; 1941, c. 50, s. 5; 1943, c. 400, s. 4; 1945, c.708, s. 4; 1951, c. 643, s. 4; 1957, c. 1340, s. 4; 1967, c. 1110, s. 3; 1973,c. 476, s. 193; 1998‑98, s. 69; 1999‑337, s. 22; 2008‑134, s.4(a); 2009-445, s. 6.)