§ 5 — Reports

§ 5. Reports. 1. Every corporation having an officer, agent or\nrepresentative within the city, shall annually on or before March\nfifteenth transmit to the director of finance a report in a form\nprescribed by him (except that a corporation which reports on the basis\nof a fiscal year shall transmit its report within two and one-half\nmonths after the close of its fiscal year), setting forth such\ninformation as the director of finance may prescribe and every taxpayer\nwhich ceases to do business in the city or to be subject to the tax\nimposed by this part shall transmit to the director of finance a report\non the date of such cessation or at such other time as he may require\ncovering each year or period for which no report was theretofore filed.\nEvery taxpayer shall also transmit such other reports and such facts and\ninformation as the director of finance may require in the administration\nof this part. The director of finance may grant a reasonable extension\nof time for filing reports whenever good cause exists.\n With respect to taxable years ending prior to December thirty-first,\nnineteen hundred sixty-six, the returns required to be made and filed\npursuant to this section shall be made and filed on or before the\nfifteenth day of the third month following the close of such taxable\nyear or the sixtieth day following the date this title becomes\neffective, whichever is later.\n An automatic extension of three months for the filing of its annual\nreport shall be allowed any taxpayer if, within the time prescribed by\neither of the preceding paragraphs, whichever is applicable, such\ntaxpayer files with the director of finance an application for extension\nin such form as he may prescribe by regulation and pays on or before the\ndate of such filing the amount properly estimated as its tax.\n 2. Every report shall have annexed thereto a certification by the\npresident, vice-president, treasurer, assistant treasurer, chief\naccounting officer or any other officer of the taxpayer duly authorized\nso to act to the effect that the statements contained therein are true.\nThe fact that an individual's name is signed on a certification of the\nreport shall be prima facie evidence that such individual is authorized\nto sign and certify the report on behalf of the corporation. Blank forms\nof reports shall be furnished by the director of finance, on\napplication, but failure to secure such a blank shall not release any\ncorporation from the obligation of making any report required by this\npart.\n 3. If the amount of taxable income for any year of any taxpayer, or of\nany shareholder of any taxpayer, which has elected to be taxed under\nsubchapter s of chapter one of the internal revenue code, as returned to\nthe United States treasury department is changed or corrected by the\ncommissioner of internal revenue or other officer of the United States\nor other competent authority, or where a renegotiation of a contract or\nsubcontract with the United States results in a change in taxable\nincome, or where a recovery of a war loss results in a computation or\nrecomputation of any tax imposed by the United States, or if a taxpayer\nor such shareholder of a taxpayer, pursuant to subsection (d) of section\nsixty-two hundred thirteen of the internal revenue code, executes a\nnotice of waiver of the restrictions provided in subsection (a) of said\nsection, such taxpayer shall report such changed or corrected taxable\nincome, or the results of such renegotiation, or such computation or\nrecomputation, or such execution of such notice of waiver and the\nchanges or corrections of his federal taxable income on which it is\nbased, within ninety days after such execution or the final\ndetermination of such change or correction or renegotiation, or such\ncomputation, or recomputation or on its next report under this part, or\nas required by the director of finance, and shall concede the accuracy\nof such determination or state wherein it is erroneous. Any taxpayer\nfiling an amended return with such department shall also file within\nninety days thereafter an amended report with the director of finance.\n 4. In the discretion of the director of finance, any taxpayer which\nowns or controls either directly or indirectly substantially all the\ncapital stock of one or more other corporations, or substantially all\nthe capital stock of which is owned or controlled either directly or\nindirectly by one or more other corporations or by interests which own\nor control either directly or indirectly substantially all the capital\nstock of one or more other corporations, may be required or permitted to\nmake a report on a combined basis covering any such other corporations\nand setting forth such information as the director of finance may\nrequire; provided, however, that no combined report covering any\ncorporation not a taxpayer shall be required unless the director of\nfinance deems such a report necessary, because of inter-company\ntransactions or some agreement, understanding, arrangement or\ntransaction referred to in subdivision five of this section, in order\nproperly to reflect the tax liability under this part. In the case of a\ncombined report the tax shall be measured by the combined entire net\nincome or combined capital, of all the corporations included in the\nreport. In computing combined entire net income intercorporate dividends\nshall be eliminated, in computing combined business and investment\ncapital intercorporate stock holdings and intercorporate bills, notes\nand accounts receivable and payable and other intercorporate\nindebtedness shall be eliminated and in computing combined subsidiary\ncapital intercorporate stockholdings shall be eliminated.\n 5. In case it shall appear to the director of finance that any\nagreement, understanding or arrangement exists between the taxpayer and\nany other corporation or any person or firm, whereby the activity,\nbusiness, income or capital of the taxpayer within the city is\nimproperly or inaccurately reflected, the director of finance is\nauthorized and empowered, in its discretion and in such manner as it may\ndetermine, to adjust items of income, deductions and capital, and to\neliminate assets in computing any allocation percentage provided only\nthat any income directly traceable thereto be also excluded from entire\nnet income, so as equitably to determine the tax. Where (a) any taxpayer\nconducts its activity or business under any agreement, arrangement or\nunderstanding in such manner as either directly or indirectly to benefit\nits members or stockholders, or any of them, or any person or persons\ndirectly or indirectly interested in such activity or business, by\nentering into any transaction at more or less than a fair price which,\nbut for such agreement, arrangement or understanding, might have been\npaid or received therefor, or (b) any taxpayer, a substantial portion of\nwhose capital stock is owned either directly or indirectly by another\ncorporation, enters into any transaction with such other corporation on\nsuch terms as to create an improper loss or net income, the director of\nfinance may include in the entire net income of the taxpayer the fair\nprofits, which, but for such agreement, arrangement or understanding,\nthe taxpayer might have derived from such transaction.\n 6. An action may be brought at any time by the corporation counsel at\nthe instance of the director of finance as agent and trustee for the\ncity to compel the filing of reports due under this part.\n 7. Reports shall be preserved for five years, and thereafter until the\ndirector of finance orders them to be destroyed.\n 8. Where the state tax commission changes or corrects a taxpayer's\nsales and compensating use tax liability with respect to the purchase or\nuse of items for which a sales or compensating use tax credit against\nthe tax imposed by this part was claimed, the taxpayer shall report such\nchange or correction to the commissioner of finance within ninety days\nof the final determination of such change or correction, or as required\nby the commissioner of finance, and shall concede the accuracy of such\ndetermination or state wherein it is erroneous. Any taxpayer filing an\namended return or report relating to the purchase or use of such items\nshall also file within ninety days thereafter a copy of such amended\nreturn or report with the commissioner of finance.\n