(a) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Director of the Department of Taxation.
(b) In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the City constituting a portion only of its total business, the Director shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the City. If the Director finds that net profits are not properly allocated to the City by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the City.
(c) The City shall accept for filing a consolidated income tax return from any affiliated group of corporations if the group filed for the same tax period a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code.
(d) If consolidated returns have been filed in prior years, the City may refuse to accept a non-consolidated return that has been filed with the Internal Revenue Service for the same reporting period if the reason for filing the non-consolidated return was to receive a tax benefit for that tax period. Returns must be filed consistently for each year.
(Ord. 4708-1974. Passed 12-3-74; Ord. 7905-1993. Passed 1-4-94; Ord. 8945-2002. Passed 11-6-02.)