58.1-421 - Alternative method of allocation. - Virginia Statutes

§ 58.1-421. Alternative method of allocation.

If any corporation believes that the method of allocation or apportionmenthereinbefore prescribed as administered by the Department has operated orwill so operate as to subject it to taxation on a greater portion of itsVirginia taxable income than is reasonably attributable to business orsources within this Commonwealth, it shall be entitled to file with theDepartment a statement of its objections and of such alternative method ofallocation or apportionment as it believes to be proper under thecircumstances with such detail and proof and within such time as theDepartment may reasonably prescribe. If the Department concludes that themethod of allocation or apportionment theretofore employed is in factinapplicable or inequitable, it shall redetermine the taxable income by suchother method of allocation or apportionment as seems best calculated toassign to the Commonwealth for taxation the portion of the income reasonablyattributable to business and sources within the Commonwealth, not exceeding,however, the amount which would be arrived at by application of the statutoryrules for allocation or apportionment.

(Code 1950, § 58-151.051; 1971, Ex. Sess., c. 171; 1984, c. 675.)