Haw. Code R. § 18-235-71 - Tax on corporations; rates; credit of shareholder of regulated investment company
(a)
(Reserved)
(b) Federal Treasury
regulations relating to the Internal Revenue Code provisions of regulated
investment companies shall apply and the imposition of tax and deductions for
dividends paid shall be as provided under section
235-71,
HRS.
(c) Undistributed capital
gains of a regulated investment company. Section
235-71,
HRS, provides that a shareholder of a regulated investment company is allowed a
credit equal to the amount of tax imposed on capital gains which are includable
in the shareholder's income tax return under section 852(b)(3)(D), IRC,
(taxation of regulated investment companies and their shareholders) limited to
the amount of tax paid by the regulated investment company at the state capital
gain rate to the State. The credit shall be applied against the shareholder's
tax liability as determined under chapter 235, HRS. Any excess amount shall be
applied or refunded to the shareholder pursuant to section
235-110,
HRS.
(d) Real estate investment
trust; in general.
(1) Federal Treasury
regulations relating to Internal Revenue Code provisions on real estate
investment trusts shall apply and the imposition of tax and deductions for
dividends paid shall be as provided under section
235-71,
HRS.
(2) Real estate investment
trust; penalties. In addition to any other penalty provided by law, the
assessable penalties with respect to liability for tax of real estate
investment trusts shall be as provided under section
235-71,
HRS and as follows:
(A) The interest and
penalty are determined based on the amount of adjustment, but only to the
extent that the deficiency dividend deduction is allowed; and
(B) The nondeductible penalty is equal to the
amount of interest for which the trust is liable on account of such adjustment.
The total penalty, however, is limited to one-half the amount of the deficiency dividend deduction.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.