Skip to Content


SENATE DOCKET, NO. 1012         FILED ON: 1/17/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1421

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Karen E. Spilka

_______________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
              Court assembled:

              The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to reform state economic substance rules.

_______________

PETITION OF:

 

Name:

District/Address:

Karen E. Spilka

Second Middlesex and Norfolk


SENATE DOCKET, NO. 1012        FILED ON: 1/17/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1421

By Ms. Spilka, a petition (accompanied by bill, Senate, No. 1421) of Karen E. Spilka for legislation to reform state economic substance rules.  Revenue. 


The Commonwealth of Massachusetts
 

_______________

In the Year Two Thousand Thirteen

_______________

 

An Act to reform state economic substance rules.
 

              Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

              SECTION 1. Chapter 62C of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by deleting Section 3A and replacing it with the following new section:-

              In applying the laws referred to in section 2, the commissioner may, in his discretion, disallow the asserted tax consequences of a transaction by asserting the application of the sham transaction doctrine or any other related tax doctrine, in which case the taxpayer shall have the burden of demonstrating by a preponderance of the evidence as determined by the commissioner that the transaction met both of the following tests: (i) the transaction changes in a meaningful way (apart from state income tax consequences) the taxpayer’s economic position, and (ii) the taxpayer has a substantial non-state-tax purpose for entering into such transaction.  Nothing in this section shall be construed to limit or negate the commissioner’s authority to make tax adjustments as otherwise permitted by law.

              SECTION 2. Section 1 is effective for tax years beginning on or after January 1, 2013.

The information contained in this website is for general information purposes only. The General Court provides this information as a public service and while we endeavor to keep the data accurate and current to the best of our ability, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Error