December 16, 2011
Sign this petition!
Large corporations are able to take advantage of tax shelters because most of them are structured as parent corporations that each own many separate subsidiary corporations operating in many states. Without mandatory combined reporting, multi-state corporations are able to shift income earned in one state to related corporate subsidiary in a state without a corporate income tax or with special corporate tax exemptions.
Mandatory combined reporting requires parent corporations and their subsidiaries to “combine” for state tax purposes to file a joint tax return. The profits of the combined corporation are apportioned by formula to each state according to the share of total business activity located in each state.
Shutting down corporate tax shelters by enacting combined reporting will result in tax system that is fairer, simpler, and better able to adequately fund the public investments and services that businesses and people of North Carolina rely on.
Learn more at http://www.ncjustice.org/.