Any term used in these rules have the meaning which is
ascribed to it in chapter 220, F.S., unless a clearly different meaning is
indicated from the context in which the term is used. For the purposes of these
rules:
(1) "Apportionment" means the
process of assigning business income between states by the use of a formula. If
the business activity in respect to any trade or business of a taxpayer occurs
both within and without Florida, and if by reason of such business activity,
the taxpayer is taxable in another state, the portion of the net income (or net
loss) arising from such trade or business which is derived from sources within
Florida shall be determined by apportionment. For purposes of apportionment of
income, a taxpayer is taxable in another state if:
(a) In that state the business is subject to
a net income tax, a franchise tax measured by net income, a franchise tax for
the privilege of doing business, or a corporate stock tax, or
(b) That state has jurisdiction to subject
the taxpayer to a net income tax regardless of whether, in fact, the state does
or does not.
(2)
"Allocation" refers to the assignment of nonbusiness income to a particular
state. Any taxpayer subject to the taxing jurisdiction of Florida must allocate
all of its nonbusiness income or loss within or without Florida in accordance
with section 220.16, F.S.
(3) "Business activity" refers to the
transactions and activity occurring in the regular course of a particular trade
or business of a taxpayer.
(4)
"Business income" means income arising from transactions and activity in the
regular course of the taxpayer's trade or business and includes income from
tangible and intangible property if the acquisition, management, and
disposition of the property constitute integral parts of the taxpayer's regular
trade or business operations. In essence, all income which arises from the
conduct of trade or business operations of a taxpayer is business income. The
income of a taxpayer is business income unless clearly classifiable as
nonbusiness income.
Cross reference: rule
12C-1.016,
F.A.C.
(5) "Doing business"
means actively engaging in any transaction for the purpose of financial gain. A
taxpayer will be considered doing business within and without Florida if it has
income from business activity which is taxable both within and without Florida.
Income derived from or attributable to sources within Florida includes income
from tangible or intangible property located or having a situs in Florida and
income from any activities carried on in Florida, whether carried on in
intrastate, interstate, or foreign commerce.
(6) "Written Notice" means any corporate
income tax, franchise tax, or emergency excise tax return required by section
220.22, F.S., formerly section
221.04, F.S., or rule
12C-1.022, F.A.C., amended
returns (Form F-1120X or an amended F-1120 or F-1120A), or a final
determination made pursuant to an audit.
Notes
Fla. Admin. Code Ann. R. 12C-1.003
Rulemaking Authority
213.06(1),
220.51 FS. Law Implemented
220.03,
220.13,
220.15,
220.16,
220.22,
220.63,
220.64
FS.
New 10-20-72, Amended
10-8-74, 8-4-75, 9-6-76, 4-11-77, 12-18-83, Formerly 12C-1.03, Amended
12-21-88, 4-8-92, 5-17-94, 1-25-12.
New 10-20-72, Amended 10-8-74, 8-4-75, 9-6-76, 4-11-77,
12-18-83, Formerly 12C-1.03, Amended 12-21-88, 4-8-92, 5-17-94,
1-25-12.
