An affiliated corporation included in a taxpayer's water's edge return shall maintain records of intercompany transactions. Upon notification by the department of the department's intent to perform an audit of the taxpayer, an affiliated corporation shall make available to the department, within 120 days of notification, records sufficient to show the following:

1. (1) for each transfer of goods or services between a corporation in the water's edge combined group and a corporation not in the water's edge combined group that was an affiliated corporation at any time during the tax year, the

   1. (A) identity of the goods or services transferred, including the model number, description, property identification number, and account code, if applicable;
   2. (B) number or amount of goods or services transferred;
   3. (C) identity of the transferor and the transferee; and
   4. (D) price and any other consideration for the transfer;

2. (2) for each transfer of the types of goods or services identified in this section to nonaffiliated corporations during the tax year or the immediately preceding tax year,

   1. (A) the number or amount of goods or services transferred; and
   2. (B) the price of those goods or services.

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

Authority: AS 43.05.080