Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595

Annotation 395.2548

(l) SALES BETWEEN PARENT AND SUBSIDIARIES

395.2548 Transfers by Book Entries. Company E was a wholly owned subsidiary of Company V. An employee of Company E purchased all of the capital stock of Company E from Company V. Company E then transferred certain physical assets to Company V. The proceeds were "offset against the stock purchase obligation." The transfer occurred after the purchase of the stock by the employee of Company V.

The transfer was not "simply a bookkeeping adjustment." There was a sale which was subject to tax. Even if the transfer occurred before the stock purchase, tax would have been due because there was a transfer of property for consideration. 2/8/94.