1. (a) Section 1515(f) of the Tax Law requires certain taxpayers that are subject to tax under article 33 to file on a combined basis with related corporations where there are substantial intercorporate transactions among the related corporations. The provisions of Subpart 6-2 of this Title relating to combined reports under article 9-A of the Tax Law are applicable to combined returns filed under section 1515(f) of the Tax Law except where otherwise provided by the Tax Law or this Part.

2. (b) In determining whether there are substantial intercorporate transactions, the commissioner will consider and evaluate all activities and transactions of the taxpayer and its related corporations, including but not limited to:

   1. (1) manufacturing, acquiring goods or property, or performing services for related corporations;
   2. (2) selling goods acquired from related corporations;
   3. (3) financing sales of related corporations;
   4. (4) performing related customer services using common facilities and employees for related corporations;
   5. (5) selling policies or contracts of insurance for related corporations;
   6. (6) reinsuring risks for related corporations;
   7. (7) collecting premiums or other consideration for any policy or contract of insurance for related corporations;
   8. (8) incurring expenses that benefit, directly or indirectly, one or more related corporations; and
   9. (9) transferring assets, including assets such as accounts receivable, patents, or trademarks from one or more related corporations.
3. (c) For purposes of determining whether the substantial intercorporate transactions requirement based on a corporation’s asset transfers is met, the term gross income means life insurance gross income or gross income as defined by section 803 or 832 of the Internal Revenue Code, whichever is applicable.
4. (d) In following the steps set forth in section 6-2.3(c) of this Title that are used in determining whether a combined report is required and, if so, which corporations are included in the combined report, at the last step (see section 6-2.3[c][10] of this Title), any corporations that are formed under the laws of another country (alien corporations), that are taxable under another franchise tax imposed by the Tax Law (or would be taxable under another franchise tax if subject to tax), or that are subject to the tax imposed by section 1502-a of the Tax Law (e.g., authorized non-life insurance corporations) or section1502-b of the Tax Law (e.g., authorized captive insurance companies) must be eliminated from the tentative combined group. Also eliminate any captive REIT or captive RIC as defined in subdivisions (9) and (10) of section 2 of the Tax Law, respectively, that is required to be included in a combined report under section 211.4(a)(6) or a combined return under section 1462(f) of the Tax Law. (Also see section 6-2.5 of this Title – Corporations not required or permitted to file a combined report.)

Tax Law, § 1515(f)