§ 44-11-1. Definitions.
For the purpose of this chapter:
(1)(a) "Captive REIT� means a corporation, trust or association:
(i) That is considered a real estate investment trust for the taxable year under section 856 of the Internal Revenue Code;
(ii) That is not regularly traded on an established securities market; and
(iii) More than fifty percent (50%) of the voting power or value of the beneficial interests
or shares of which at any time during the last half of the taxable year, is owned
or controlled, directly or indirectly, by a single entity that is subject to the provisions
of Subchapter C of Chapter 1 of the Internal Revenue Code; and
(b) "Captive REIT� does not include:
(i) A corporation, trust or association more than fifty percent (50%) of the voting power
or value of the beneficial interests or shares of which, at any time during which
the corporation, trust or association satisfies item (1)(iii) of this subsection,
is owned or controlled, directly or indirectly, by:
(A) A real estate investment trust other than a real estate investment trust described
in item (i) of this subsection; or
(B) A person exempt from taxation under §â€‚501(a) of the Internal Revenue Code; or
(C) A listed Australian Property Trust; and
(ii) Subject to regulations that the tax administrator adopts, a real estate investment
trust that is intended to become regularly traded on an established securities market
and that satisfies the requirements of §â€‚865(A)(5) and (6) of the Internal Revenue
Code by reason of §â€‚856(h)(2) of the Internal Revenue Code; and
(c) For purposes of this section, the constructive ownership rules prescribed under §â€‚318(a) of the Internal Revenue Code, as modified by §â€‚856(d)(5) of the Internal Revenue Code, shall apply in determining the ownership of stock, assets or net profits of any
person.
(2) "Combined group� means a group of two or more corporations in which more than fifty
percent (50%) of the voting stock of each member corporation is directly or indirectly
owned by a common owner or owners, either corporate or non-corporate, or by one or
more of the member corporations, and that are engaged in a unitary business.
(3) "Common ownership� means more than fifty percent (50%) of the voting control of each
member of the group is directly or indirectly owned by a common owner or owners, either
corporate or non-corporate, whether or not owner or owners are members of the combined
group.
(4) "Corporation� means every corporation, joint-stock company, or association, wherever
incorporated, a real estate investment trust, a regulated investment company, a personal
holding company registered under the Federal Investment Company Act of 1940, 15 U.S.C. §â€‚80a-1 et seq., and also a trustee or trustees conducting a business where interest or ownership
is evidenced by certificates or other written instruments, deriving any income from
sources within this state or engaging in any activities or transactions within this
state for the purpose of profit or gain, whether or not an office or place of business
is maintained in this state, or whether or not the income, activities, or transactions
are connected with intrastate, interstate, or foreign commerce, except:
(i) State banks, mutual savings banks, federal savings banks, trust companies, national
banking associations, building and loan associations, credit unions, and loan and
investment companies;
(ii) Public service corporations included in chapter 13 of this title, except as otherwise
provided in §â€‚44-13-2.2;
(iii) Insurance and surety companies;
(iv) Corporations specified in §â€‚7-6-4, incorporated hospitals, schools, colleges, and other institutions of learning not
organized for business purposes and not doing business for profit and no part of the
net earnings of which inures to the benefit of any private stockholder or individual,
whether incorporated under any general law of this state or by any special act of
the general assembly of this state;
(v) Fraternal beneficiary societies as set forth in §â€‚27-25-1;
(vi) Any corporation expressly exempt from taxation by charter;
(vii) Corporations which together with all corporations under direct or indirect common
ownership that satisfies the other requirements of this paragraph employ not less
than five (5) full-time equivalent employees in the state; which maintain an office
in the state; and activities within the state which are confined to the maintenance
and management of their intangible investments or of the intangible investments of
corporations or business trusts registered as investment companies under the Investment
Company Act of 1940, 15 U.S.C. §â€‚80a-1 et seq., and the collection and distribution of the income from those investments
or from tangible property physically located outside the state. For purposes of this
paragraph, "intangible investments� includes, without limitation, investments in stocks,
bonds, notes, and other debt obligations, including debt obligations of affiliated
corporations, patents, patent applications, trademarks, trade names, copyrights, and
similar types of intangible assets.
(5) "Fiscal year� means an accounting period of twelve (12) months ending on the last
day of any month other than December.
(6) "Member� means a corporation included in a unitary business.
(7) "Place of business� means a regular place of business, which, in turn, means any bona
fide office, other than a statutory office, factory, warehouse, or other space which
is regularly used by the taxpayer in carrying on its business. Where, as a regular
course of business, property of the taxpayer is stored by it in a public warehouse
until it is shipped to customers, the warehouse is considered a regular place of business
of the taxpayer and, where as a regular course of business, raw material or partially
furnished goods of a taxpayer are delivered to an independent contractor to be converted,
processed, finished, or improved and the finished goods remain in the possession of
the independent contractor until shipped to customers, the plant of the independent
contractor is considered a regular place of business of the taxpayer. The mere consignment
of goods by the taxpayer to an independent factor outside this state for sale at the
consignee's discretion does not constitute the taxpayer as having a regular place
of business outside this state.
(8) "Tax haven� means a jurisdiction that, during the tax year in question has no or nominal
effective tax on the relevant income and;
(i) Has laws or practices that prevent effective exchange of information for tax purposes
with other governments on taxpayers benefiting from the tax regime;
(ii) Has a tax regime which lacks transparency. A tax regime lacks transparency if the
details of legislative, legal, or administrative provisions are not open and apparent,
or are not consistently applied among similarly situated taxpayers, or if the information
needed by tax authorities to determine a taxpayer's correct tax liability, such as
accounting records and underlying documentation is not adequately available;
(iii) Facilitates the establishment of foreign-owned entities without the need for a local
substantive presence or prohibits these entities from having any commercial impact
on the local economy;
(iv) Explicitly or implicitly excluded the jurisdiction's resident taxpayers from taking
advantage of the tax regime benefits or prohibits enterprisers that benefit from the
regime from operating in the jurisdiction's domestic market; or
(v) Has created a tax regime which is favorable for tax avoidance, based upon an overall
assessment of relevant factors, including whether the jurisdiction has a significant
untaxed offshore financial/other services sector relative to its overall economy.
(9) "Taxable year� means the calendar year or the fiscal year ending during the calendar
year upon the basis of which the net income is computed under this chapter. "Taxable
year� means, in the case of a return made for a fractional part of a year under the
provisions of this chapter or under regulations prescribed by the tax administrator,
the period for which the return is made.
(10) "Taxpayer� means and includes any corporation subject to the provisions of this chapter.
(11) "Unitary business� means the activities of a group of two (2) or more corporations
under common ownership that are sufficiently interdependent, integrated, or interrelated
through their activities so as to provide mutual benefit and produce a significant
sharing or exchange of value among them or a significant flow of value between the
separate parts. The term unitary business shall be construed to the broadest extent
permitted under the United States Constitution.
(12) "United States� means the fifty (50) states of the United States, the District of
Columbia, the United States' territories and possessions.