Florida Regulations 25-14.010: Accounting for Deferred Taxes from Intercompany Profits
Current as of: 2024 | Check for updates
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(1) Definitions. For the purposes of this rule, the following definitions shall apply:
(a) “”Intercompany transactions”” are transactions involving the sale of depreciable assets includable in rate base by a manufacturing or non-manufacturing member of a controlled group which files a consolidated tax return to a non-manufacturing member of the group.
(b) “”Net profit”” on intercompany transactions shall be sales revenue less cost of sales and general and administrative expenses attributed to sales.
(c) “”Gross profit”” on intercompany transactions shall be sales revenue less cost of sales.
(d) “”Deferred taxes”” are taxes calculated by applying the marginal statutory tax rate to the gross or net profit from intercompany transactions.
(2) Deferred taxes. For ratemaking purposes, deferred taxes shall be calculated on the net profit or gross profit from intercompany transactions and shall be treated as zero cost capital.
Rulemaking Authority Florida Statutes § 350.127(2). Law Implemented 366.041(1), 366.06(1), 367.081(2) FS. History-New 9-29-86, Amended 7-16-87.
Terms Used In Florida Regulations 25-14.010
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
(b) “”Net profit”” on intercompany transactions shall be sales revenue less cost of sales and general and administrative expenses attributed to sales.
(c) “”Gross profit”” on intercompany transactions shall be sales revenue less cost of sales.
(d) “”Deferred taxes”” are taxes calculated by applying the marginal statutory tax rate to the gross or net profit from intercompany transactions.
(2) Deferred taxes. For ratemaking purposes, deferred taxes shall be calculated on the net profit or gross profit from intercompany transactions and shall be treated as zero cost capital.
Rulemaking Authority Florida Statutes § 350.127(2). Law Implemented 366.041(1), 366.06(1), 367.081(2) FS. History-New 9-29-86, Amended 7-16-87.