Instructions For Form Nyc-3a - Combined General Corporation Tax Return

Instructions for Form NYC-3A

F I N A N C E

NEW

YORK

2000

Combined General Corporation Tax Return

for fiscal years beginning in 2000 or for calendar year

a financial holding company may file a combined

tions that are to be included in the com-

E N E R A L

N F O R M A T I O N

report filed under the BCT with one or more bank-

bined return are owned or controlled,

ing corporations 65% or more owned or controlled,

either directly or indirectly, by the same

(Additional instructions are on Form NYC-3L.)

directly or indirectly, by that bank holding compa-

interests.

Transitional provisions relation to the enact-

ny.

“Substantially all” is ordinarily considered the actu-

ment of the Gramm-Leach-Bliley Act of 1999:

This return may be made only by corporations that

al or beneficial ownership or control of 80% or more

qualify to file on a combined basis, pursuant to Title

of the voting stock of the issuing corporation

Corporations formed before January 1, 2000:

11, Chapter 6 of the NYC Administrative Code.

throughout the taxable year.

Except for a banking corporation described in para-

In general, the parent corporation should act as the

B - Unitary business:

graphs (1) through (8) of Ad. Code section 11-

reporting corporation for the combined group. The

The corporations that are to be included in the com-

640(a) (see, Form NYC-1, Instructions "Who Must

reporting corporation must be the parent corpora-

bined return must be engaged in a “unitary busi-

File" items A through C), for taxable years begin-

tion if it is a member of the combined group. A par-

ness.” A unitary business may exist when the activi-

ning after 1999 and before 2001, a corporation that

ent corporation is the corporation that owns or con-

ties of each corporation in the group are related to

was in existence before January 1, 2000 will be tax-

trols, directly or indirectly, substantially all of the

the activities of the other corporations in the group,

able under the same tax (either NYC General Cor-

capital stock of each other member of the com-

e.g., manufacturing or acquiring goods or perform-

poration Tax (GCT) or NYC Banking Corporation

bined group. If the parent corporation is not part of

ing services for the other corporations in the group;

Tax (BCT)) as applied to it for its last taxable year

the combined group, the combined group must

selling goods acquired from corporations in the

beginning before January 1, 2000. For this purpose,

then designate a member as its reporting corpora-

group; or financing sales of other corporations in

a corporation will be considered to have been sub-

tion.

the group. Another consideration is whether the

ject to a tax prior to 2000 if it was not a taxpayer but

corporation engages in the same or related lines of

was properly included in a combined report filed by

If the parent corporation is not part of the combined

business as the other corporations in the group

another corporation under that tax.

group, or if substantially all of the capital stock of a

such as: the manufacture or sale of similar prod-

parent corporation that is a member of the com-

ucts, the performance of similar services, or the

Newly-formed Corporations:

bined group is owned or controlled, directly or indi-

performance of services for the same customers.

rectly, by a person or corporation that is not part of

A corporation formed on or after January 1, 2000,

the combined group, enter the name of the non-

and before January 1, 2001 may elect to be subject

C - Filing on Separate Basis Creates

member parent or that person or corporation and

to either the GCT or BCT for its taxable years

Distortion:

its Employer Identification Number (if any) in the

A combined return must be filed if filing on a sepa-

beginning after 1999 and before 2001 provided the

box entitled “Name of Parent of Controlled Group”

corporation is either:

rate basis would distort a corporation’s activities,

on page 1. The name entered should correspond to

business, income or capital in New York City. Fil-

a financial subsidiary, or

the person or corporation listed on line 3 or 4 on

ing on a separate basis is presumed to be distortive

page 5 of Form NYC-3L.

when there are “substantial intercorporate transac-

at least 65% of the corporation's voting stock is

tions” among the corporations meeting the require-

owned or controlled, directly or indirectly, by a

REQUIREMENTS FOR FILING ON A COM-

ments in Section A above. The substantial intercor-

financial holding company, and the corporation

porate transaction test may be met where as little as

BINED BASIS

is principally engaged in activities described in

For tax periods ending on or after December 31,

50 percent of a corporation’s receipts or expenses

sections 4(k) 4 or 4(k)5 of the Bank Holding

1997, advance permission to file on a combined

are from

Company Act of 1956, as amended, or described

basis is not required. Provided all of the informa-

in regulations promulgated under that section.

manufacturing or acquiring goods or property

tion required to be submitted on the Affiliations

or performing services for,

A financial subsidiary is a corporation whose voting

Schedule and the Combined Group Information

selling goods acquired from or financing sales

stock is 65% or more owned or controlled directly

Schedule is submitted, a group of corporations

of, or

or indirectly, by a banking corporation (including a

meeting the requirements set forth below is

performing related customer services using

corporation that has elected to be subject to the

deemed to have tentative permission to file on a

common facilities and employees with,

BCT under these transition rules) described in

combined basis. However, the combined filing is

corporations meeting the requirements in Section A

paragraphs (1) through (3) of Ad. Code section 11-

subject to revision or disallowance on audit. This

above. Only transactions directly connected with

640(a) and described in 12 USCS section 24a or sec-

return will not be considered complete unless all of

the business conducted by the corporation will be

tion 46 of the Federal Deposit Insurance Act.

the information required is submitted.

considered. Service functions (such as accounting,

A financial holding company is a corporation that

A combined return may be required or permitted

legal and personal services) are not considered

has filed with the Federal Reserve Board a written

when all of the following requirements have been

when they are incidental to the business of the cor-

declaration of its election to be a financial holding

met:

poration providing the services.

company under section 4(i) of the Bank Holding

Corporations not subject to tax will not be required

Company Act of 1956, as amended , provided the

A - Stock ownership or control:

to be included in a combined report unless the

Federal Reserve Board has not found that election

1) A reporting corporation owns or controls,

Department of Finance determines inclusion is

to be ineffective.

either directly or indirectly, substantially

necessary to properly reflect the tax liability in

all of the capital stock of all the other cor-

An election by a newly-formed corporation

accordance with 19 RCNY Section 11-92(a).

porations that are to be included in the

under this provision must be made on or

combined return; or

Alien corporations, corporations that are taxable

before the due date for filing its return for the

under Title 11, Chapter 6, Subchapter 3 or under

2) Substantially all of the capital stock of the

applicable year, including extensions, and is

Title 11, Chapter 11 (except a vendor of utility ser-

made by filing the return required under the

reporting corporation is owned or con-

vices that is taxable under both Chapter 11 and

trolled, either directly or indirectly, by

appropriate tax. The election is irrevocable.

Subchapter 2 of Chapter 6), and insurance corpora-

other corporations that are to be included

A bank holding company that during a taxable year

tions may not be included in a combined report.

in the combined return; or

beginning after 1999 and before 2001 is doing busi-

3) Substantially all of the capital stock of the

Effective for taxable years beginning on or after

ness in the city and registers for the first time as a

reporting corporation and substantially all

January 1, 1994, a corporation that elects the appli-

bank holding company under the Bank Holding

of the capital stock of the other corpora-

cation of IRC Section 936 (Puerto Rico and U.S.

Company Act of 1956, as amended and elects to be

Instructions For Form Nyc-3a - Combined General Corporation Tax Return - 2000

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