1. (a) A water's edge return filed under AS 43.20.145 must separately identify the income and apportionment factors of each corporation included in the return. The corporations included in the return comprise the water's edge combined group.
2. (b) The income and apportionment factors of a corporation not included in the water's edge combined report must be excluded from the return filed under AS 43.20.145.
3. (c) A water's edge combined report must include each corporation and each tax haven corporation that is part of the taxpayer's affiliated group and is part of the taxpayer's unitary business.
4. (d) A taxpayer claiming that an affiliated corporation meets the 80 percent foreign business requirements of Internal Revenue Code section 861(c) (26 U.S.C. 861(c)) must provide proof of such treatment in the federal return.

(Eff. 7/9/93, Register 127; am 3/6/98, Register 145)