Utah Code 59-7-402. Water’s edge combined report

59-7-402. Water’s edge combined report.

(1)	Except as provided in Section 59-7-403, if any corporation listed in Subsection 59-7-101(40)(a) is doing business in Utah, the unitary group shall file a water’s edge combined report.

Terms Used In Utah Code 59-7-402

Affiliated group: means one or more chains of corporations that are connected through stock ownership with a common parent corporation that meet the following requirements:

(i)	at least 80% of the stock of each of the corporations in the group, excluding the common parent corporation, is owned by one or more of the other corporations in the group; and

(ii)

the common parent directly owns at least 80% of the stock of at least one of the corporations in the group. See Utah Code 59-7-101

Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

Corporation: includes :

(a)	entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue Code; and

(b)

other organizations that are taxed as corporations for federal income tax purposes under the Internal Revenue Code. See Utah Code 59-7-101

Doing business: includes any transaction in the course of business by a domestic corporation or by a foreign corporation qualified to do or doing business in this state. See Utah Code 59-7-101

Internal Revenue Code: means Title 26 of the United States Code as effective during the year in which Utah taxable income is determined. See Utah Code 59-7-101

return: includes a combined report. See Utah Code 59-7-101

Unitary group: includes a captive real estate investment trust. See Utah Code 59-7-101

(2)

(a)

A group of corporations that are not otherwise a unitary group may elect to file a water’s edge combined report if each member of the group is:

(i)	doing business in Utah;

(ii)	part of the same affiliated group; and

(iii)

qualified, under Section 1501, Internal Revenue Code, to file a federal consolidated return.

(b)	Each corporation within the affiliated group that is doing business in Utah must consent to filing a combined report. If an affiliated group elects to file a combined report, each corporation within the affiliated group that is doing business in Utah must file a combined report.

(c)	Corporations that elect to file a water’s edge combined report under this section may not thereafter elect to file a separate return without the consent of the commission.

Amended by Chapter 368, 2021 General Session

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