35 Miss. Code. R. 3-08-07-101 - Commissioner's Authority to Require Filing of Combined or Consolidated Return

1. The Commissioner may require any or all members of a group of affiliated corporations, whether or not subject to the tax jurisdiction of this state, to file a combined or consolidated Mississippi income tax return if he believes such combined or consolidated return is necessary to clearly and equitably reflect the Mississippi taxable income of the affiliated group, or included member or members thereof, subject to the following conditions:

a. The net business income (or loss) of each member required to be included in the combined income tax return shall be determined on an individual corporate member basis. The net business income (or loss) so computed for each member shall be combined to determine the net business income (or loss) of the affiliated group of corporations. The combined net business income (or loss) shall then be apportioned by use of formulas prescribed and set forth in the Multistate Regulation to determine the amount of net business income apportioned to Mississippi. The apportionment formula provided in the Multistate Regulation shall then be the consolidated elements or components of the required factors for the affiliated group.

b. To the amount determined in (a) above shall be added the combined net profit (or loss) from non-business income of the affiliated group allocated or apportioned to Mississippi to determine the total Mississippi taxable income.

2. However, if the combined income under paragraph one (1) of this section does not clearly reflect Mississippi income then the Commissioner may require consolidated returns of any of the corporations that are members of the affiliated group that would be necessary to clearly and equitably reflect the Mississippi income of the affiliated group.

Notes

35 Miss. Code. R. 3-08-07-101