Kansas Statutes 79-3288. Procedure where allocation does not fairly represent taxpayer’s business activity; burden of proof of tax evasion
Terms Used In Kansas Statutes 79-3288
- Director: means the director of taxation. See Kansas Statutes 79-32,109
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Secretary: means secretary of the Kansas department of revenue. See Kansas Statutes 79-32,278
- State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. See Kansas Statutes 79-3271
If the allocation and apportionment provisions of this act including the provisions of Kan. Stat. Ann. § 79-3279, do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the secretary of revenue may require, in respect to all or any part of the taxpayer’s business activity, if reasonable:
(a) Separate accounting;
(b) the exclusion of any one or more of the factors;
(c) the inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this state; or
(d) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income; or
(e) in the case of two or more businesses, whether or not incorporated and whether or not organized in Kansas, owned or controlled directly or indirectly by the same interests, which contrive through inter-company transactions to evade taxes imposed under this act, the secretary of revenue may distribute or allocate the gross income and deductions between or among such businesses or may require returns on a consolidated basis. The burden of proof of any contrivance to evade taxes under this act shall rest upon the director of taxation or secretary of revenue.