Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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G

295.0000 GROSS RECEIPTS

Annotation 295.0680

(a) GENERAL

295.0680 Selling Price Below Cost. Even though advertising material is sold for less than its cost the difference between the cost and the selling price does not represent a taxable figure, unless the sole reason for selling below cost is to avoid or minimize the tax, with the true selling price being in some manner concealed or paid through some indirect method. This assumes, of course, that the transaction is a bona fide business transaction not designed to set up a fictitious sales price. 4/9/51.