1. A. Under guidelines hereby established, a financial institution is granted the discretion of electing either of the following approved methods of allocating both capital stock and net income for each branch office when more than one parish is involved:

   1. 1. actual (per accounting records)―branch capital and net income;
   2. 2. deposits―quarterly average as a percentage of branch to total institution.

2. B. If deposits method is elected, Form TC-6 shall be submitted to indicate deposit balances for each branch office. The percentage derived shall be applied to both capital and net income for allocation purposes.

   1. 1. Any financial institution believed to be shifting the accounting of office deposits in an abnormal manner shall be subject to audit by the Tax Commission under authority granted pursuant to R.S. 47:1837.
3. C. Once an election is made by the institution, a change to the other alternative is permitted only upon prior, written approval of the Tax Commission. If such change is granted, the new allocation method shall remain in effect for a period of at least five years thereafter before another change request will be considered, unless the commission permits a waiver of the five year requirement.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1967, R.S. 47:1968, R.S. 47:1969, R.S. 6:942, R.S. 6:943 and R.S. 6:944.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Revenue and Taxation, Tax Commission, LR 13:249 (April 1987), amended LR 16:1064 (December 1990), LR 22:117 (February 1996), amended by the Department of Revenue, Tax Commission, LR 32:439 (March 2006).