Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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E

220.0000 "ENGAGED IN BUSINESS"

Annotation 220.0047

220.0047 Catalogs Distributed in California by Related Corporation. An out-of-state operation engages in mail order sales to employees of its parent corporation. The parent corporation maintains facilities in California and distributes catalogs to its employees via inter-office mail. All orders and payments are sent by individual employees to the out-of-state subsidiary and the subsidiary sends all merchandise to the individual purchasers via United States mail or a common carrier. The parent corporation acts as an agent of the subsidiary when distributing the catalogs. The catalogs are for the purpose of facilitating sales, and the parent is therefore an agent of the subsidiary for the purpose of section 6203. The subsidiary is therefore engaged in business in this state because it has an agent in this state for the purpose of selling tangible personal property. 11/6/79.