CopyCited 7 times | Published | Florida 3rd District Court of Appeal
...Do profits or losses derived by a corporate income taxpayer from operations in Puerto Rico come within the foreign source income exclusion of F.S. §
220.13(1)(b)2.b.? "B. If so, is the foreign source income adjustment of §
220.13 applicable to an affiliated group filing a consolidated return under F.S. §
220.131? "C....
...e foreign source income adjustment of F.S. §
220.13. In that alternative, even if they did, petitioners contend that such adjustments required by §
220.13 are not applicable to an affiliated group of corporations filing a consolidated return under §
220.131, which mandates the use of federal taxable income. "It is the respondent's contention that the adjustments required by §
220.13 are applicable to an affiliated group of corporations filing a consolidated return under §
220.131 and that losses derived from Puerto Rican operations are not includable in adjusted federal taxable income for Florida purposes....
...220 pertaining to adjusted federal income. The first is §
220.13 which defines it as federal taxable income, subject to certain limitations on loss and expense carryovers, adjusted in accordance with specified additions and subtractions. The second is §
220.131 which allows an affiliated group of corporations to file a consolidated return....
...shall be made in the same manner and under the same procedures ... as are required for consolidating the incomes of affiliated corporations for the taxable year for federal income tax purposes ..., and the amount shown as consolidated taxable income shall be the amount subject to tax under this Code.' F.S. § 220.131(4)....
...Net income is defined in terms of adjusted federal income. The opening sentence of §
220.13, defining adjusted federal income, provides that it means an `amount equal to the taxpayer's taxable income ... or said taxable income of more than one taxpayer as provided in §
220.131, adjusted...' by certain additions and subtractions....
CopyCited 4 times | Published | Florida 1st District Court of Appeal
...h corporation had filed a separate federal income tax return for the taxable year and each preceding taxable year for which it was a member of an affiliated group, unless a consolidated return for the taxpayer and others is required or elected under § 220.131; ......
...ference to the IRC's definition in section 1504(a), there should be no question that AT & T and similar corporations are entitled to the same treatment of dividend income in Florida. The Department, however, asserts in its final order that [s]ection 220.131, Florida Statutes, contains a Florida departure from the federal concepts of "includible corporations" and "affiliated groups," such that a subsidiary which is not subject to tax under the Florida Code is not a Florida "includible corporation...
...That the legislature chose to adopt the federal treatment of dividend income is evidenced by the absence of any limitations relating to such *1030 income in the final version of section
220.13(2). [4] Finally, we find the Department's reliance on Florida's alleged departure from the federal concept of "affiliated group" in Section
220.131, Florida Statutes (1973), to be misplaced....
...h subject to and exempt from Florida taxation, is one of the four mandatory deviations from federal tax concepts embodied in the Florida code, [6] we do not find that deviation controlling in this case. See Corporate Income Taxation, supra at 12-13. Section 220.131 applies only to those corporations which either elect or are required by the Department to file consolidated returns in Florida. Because AT & T elected instead to file a separate return in Florida, and the Department did not choose to require the filing of a consolidated return, the provisions of section 220.131 are simply not applicable and may not be used circuitously to support the Department's otherwise tenuous position....
...and capital losses, capital transactions, small businesses and foreign source income. That the Florida treatment of dividend income thus does not deviate from the federal scheme is readily apparent. See Corporate Income Taxation, supra at 11-23. [5] Section 220.131, Florida Statutes (1973), provides, in relevant part, that (1) Subject to subsection (5), any corporation subject to tax under this code which is the parent company of an affiliated group of corporations may elect ......
...The Department urges that we apply that definition, instead of the statutory definition of affiliated groups found in section
220.03(1)(a), in this case. We decline to do so for two reasons: First, AT & T did not elect to file a consolidated return pursuant to section
220.131 and we therefore see no reason to apply the provisions of that section to the facts of this case....
CopyCited 1 times | Published | Florida 1st District Court of Appeal | 2008 Fla. App. LEXIS 2129, 2008 WL 420039
...ncome tax return. During that same period, affiliated corporations having no nexus with Florida did not file a Florida income tax return. From 1993 through 1999, appellants filed Florida consolidated tax returns for the affiliated group, pursuant to section 220.131, Florida Statutes, although not all of the corporations were Florida nexus corporations....
...England, Corporate Income Taxation in Florida: Background, Scope, and Analysis, Symposium, Fla. St. L.Rev. 4, 10 (1972)). This approach of “piggybacking” on federal tax code provisions is evident in two provisions of the Florida tax code that apply to appellants’ situation. Section 220.131(4) reads: The computation of consolidated taxable income for the members of an affiliated group of corporations subject to tax hereunder shall be made in the same manner and under the same procedures, including all intercompany adjust...
...the specific provisions of law [purportedly] implemented” in violation of- section
120.52(8)(c), Florida Statutes. As noted above, two of the specific provisions of law identified as intended to be implemented by the Florida SRLY rule are sections
220.131(4) and
220.13(1)(b)1, Florida Statutes....
