(1) ORS
317A.109 requires a person or
unitary group to include the value of property transferred into Oregon for use
in the business of the person or unitary group if:
(a) The person or unitary group received the
property outside Oregon and transferred it into Oregon for use in the business
of the person or unitary group within one year of receiving it outside Oregon,
and
(b) The receipt of the property
outside Oregon and its subsequent transfer into Oregon was intended, in whole
or in part, to avoid the Corporate Activity Tax (CAT).
(2) A person or unitary group who intended to
avoid the CAT must include the fair market value of property transferred into
Oregon in their taxable commercial activity for the tax year the property was
transferred into Oregon.
(3)
Section (2) of this rule does not apply to the extent the sale of the property
transferred into Oregon is excluded from the definition of
commercial activity
by law.
Example: Unitary group XYZ purchases motor
vehicle fuel in Idaho on January 15, 2020 and transfers the motor vehicle fuel
to Oregon on January 18, 2020. Unitary group XYZ would not include the fair
market value of the motor vehicle fuel in their Oregon commercial activity
because commercial activity excludes receipts from the sale of motor vehicle
fuel.
(4) A person or
unitary group should not include in their taxable commercial activity the fair
market value of property transferred into Oregon within a year of receipt
outside Oregon if the transfer of property into Oregon within a year of receipt
outside Oregon was not intended to avoid the CAT in whole or in part.
(5) A person or unitary group who omits from
commercial activity the fair market value of property transferred into Oregon
within a year of receipt outside Oregon is required to include the fair market
value upon a showing by the department that the taxpayer intended to avoid the
CAT in whole or in part.
Notes
Or. Admin. Code §
150-317-1130
REV 15-2019,
temporary adopt filed 12/30/2019, effective 01/01/2020 through 06/28/2020; REV
1-2020, temporary adopt filed 01/03/2020, effective 01/03/2020 through
06/28/2020;
REV
11-2020, adopt filed 06/24/2020, effective
6/28/2020
Statutory/Other Authority: ORS
305.100,
317A.109 &
317A.143
Statutes/Other Implemented: ORS
317A.109
