Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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347.0000 MANUFACTURING EQUIPMENT—Regulation 1525.2

Annotation 347.0878

347.0878 Related Corporations. Corporations A and B are "related persons" within the meaning of Internal Revenue Code sections 267 and 318. Corporation A only maintained a sales employee inside California and the operations of this sales representative fell within the nonmanufacturing SIC division f, "Wholesale trade," involving the wholesale distribution of durable and non-durable goods. Corporation B's activity in this state consist of selling equipment, parts, and service/repair. Corporation B has not engaged in a manufacturing operation inside this state as defined in SIC codes 2000 to 3999 within the previous 36 months.

Based upon the present and past operation of Corporations A and B, they are not precluded from qualifying as a "new trade or business" under Regulation 1525.2. 9/15/97.