N.Y. General City Model 772/66 § 5: Reports

§ 5. Reports. 1. Every corporation having an officer, agent or

representative within the city, shall annually on or before March

fifteenth transmit to the director of finance a report in a form

prescribed by him (except that a corporation which reports on the basis

of a fiscal year shall transmit its report within two and one-half

months after the close of its fiscal year), setting forth such

information as the director of finance may prescribe and every taxpayer

which ceases to do business in the city or to be subject to the tax

imposed by this part shall transmit to the director of finance a report

on the date of such cessation or at such other time as he may require

covering each year or period for which no report was theretofore filed.

Every taxpayer shall also transmit such other reports and such facts and

information as the director of finance may require in the administration

of this part. The director of finance may grant a reasonable extension

of time for filing reports whenever good cause exists.

With respect to taxable years ending prior to December thirty-first,

nineteen hundred sixty-six, the returns required to be made and filed

pursuant to this section shall be made and filed on or before the

fifteenth day of the third month following the close of such taxable

year or the sixtieth day following the date this title becomes

effective, whichever is later.

An automatic extension of three months for the filing of its annual

report shall be allowed any taxpayer if, within the time prescribed by

either of the preceding paragraphs, whichever is applicable, such

taxpayer files with the director of finance an application for extension

in such form as he may prescribe by regulation and pays on or before the

date of such filing the amount properly estimated as its tax.

2. Every report shall have annexed thereto a certification by the

president, vice-president, treasurer, assistant treasurer, chief

accounting officer or any other officer of the taxpayer duly authorized

so to act to the effect that the statements contained therein are true.

The fact that an individual's name is signed on a certification of the

report shall be prima facie evidence that such individual is authorized

to sign and certify the report on behalf of the corporation. Blank forms

of reports shall be furnished by the director of finance, on

application, but failure to secure such a blank shall not release any

corporation from the obligation of making any report required by this

part.

3. If the amount of taxable income for any year of any taxpayer, or of

any shareholder of any taxpayer, which has elected to be taxed under

subchapter s of chapter one of the internal revenue code, as returned to

the United States treasury department is changed or corrected by the

commissioner of internal revenue or other officer of the United States

or other competent authority, or where a renegotiation of a contract or

subcontract with the United States results in a change in taxable

income, or where a recovery of a war loss results in a computation or

recomputation of any tax imposed by the United States, or if a taxpayer

or such shareholder of a taxpayer, pursuant to subsection (d) of section

sixty-two hundred thirteen of the internal revenue code, executes a

notice of waiver of the restrictions provided in subsection (a) of said

section, such taxpayer shall report such changed or corrected taxable

income, or the results of such renegotiation, or such computation or

recomputation, or such execution of such notice of waiver and the

changes or corrections of his federal taxable income on which it is

based, within ninety days after such execution or the final

determination of such change or correction or renegotiation, or such

computation, or recomputation or on its next report under this part, or

as required by the director of finance, and shall concede the accuracy

of such determination or state wherein it is erroneous. Any taxpayer

filing an amended return with such department shall also file within

ninety days thereafter an amended report with the director of finance.

4. In the discretion of the director of finance, any taxpayer which

owns or controls either directly or indirectly substantially all the

capital stock of one or more other corporations, or substantially all

the capital stock of which is owned or controlled either directly or

indirectly by one or more other corporations or by interests which own

or control either directly or indirectly substantially all the capital

stock of one or more other corporations, may be required or permitted to

make a report on a combined basis covering any such other corporations

and setting forth such information as the director of finance may

require; provided, however, that no combined report covering any

corporation not a taxpayer shall be required unless the director of

finance deems such a report necessary, because of inter-company

transactions or some agreement, understanding, arrangement or

transaction referred to in subdivision five of this section, in order

properly to reflect the tax liability under this part. In the case of a

combined report the tax shall be measured by the combined entire net

income or combined capital, of all the corporations included in the

report. In computing combined entire net income intercorporate dividends

shall be eliminated, in computing combined business and investment

capital intercorporate stock holdings and intercorporate bills, notes

and accounts receivable and payable and other intercorporate

indebtedness shall be eliminated and in computing combined subsidiary

capital intercorporate stockholdings shall be eliminated.

5. In case it shall appear to the director of finance that any

agreement, understanding or arrangement exists between the taxpayer and

any other corporation or any person or firm, whereby the activity,

business, income or capital of the taxpayer within the city is

improperly or inaccurately reflected, the director of finance is

authorized and empowered, in its discretion and in such manner as it may

determine, to adjust items of income, deductions and capital, and to

eliminate assets in computing any allocation percentage provided only

that any income directly traceable thereto be also excluded from entire

net income, so as equitably to determine the tax. Where (a) any taxpayer

conducts its activity or business under any agreement, arrangement or

understanding in such manner as either directly or indirectly to benefit

its members or stockholders, or any of them, or any person or persons

directly or indirectly interested in such activity or business, by

entering into any transaction at more or less than a fair price which,

but for such agreement, arrangement or understanding, might have been

paid or received therefor, or (b) any taxpayer, a substantial portion of

whose capital stock is owned either directly or indirectly by another

corporation, enters into any transaction with such other corporation on

such terms as to create an improper loss or net income, the director of

finance may include in the entire net income of the taxpayer the fair

profits, which, but for such agreement, arrangement or understanding,

the taxpayer might have derived from such transaction.

6. An action may be brought at any time by the corporation counsel at

the instance of the director of finance as agent and trustee for the

city to compel the filing of reports due under this part.

7. Reports shall be preserved for five years, and thereafter until the

director of finance orders them to be destroyed.

8. Where the state tax commission changes or corrects a taxpayer's

sales and compensating use tax liability with respect to the purchase or

use of items for which a sales or compensating use tax credit against

the tax imposed by this part was claimed, the taxpayer shall report such

change or correction to the commissioner of finance within ninety days

of the final determination of such change or correction, or as required

by the commissioner of finance, and shall concede the accuracy of such

determination or state wherein it is erroneous. Any taxpayer filing an

amended return or report relating to the purchase or use of such items

shall also file within ninety days thereafter a copy of such amended

return or report with the commissioner of finance.