Bill Text: FL S1764 | 2011 | Regular Session | Introduced
Bill Title: Corporate Income Taxes
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1764 Detail]
Download: Florida-2011-S1764-Introduced.html
Florida Senate - 2011 SB 1764
By Senator Rich
34-01239-11 20111764__
1 A bill to be entitled
2 An act relating to corporate income taxes; amending s.
3 220.13, F.S.; limiting deductions of certain
4 intangible expenses, licensing fees, and management
5 fees paid by a taxpayer to a related entity; creating
6 exceptions to the limitations on deductions; requiring
7 the adjustment of the income of a related entity under
8 certain circumstances; limiting the number of times
9 certain items may be added or subtracted from taxable
10 income; specifying information relating to
11 transactions with related entities which must be
12 contained in a corporate income tax return; providing
13 that the failure of a taxpayer to add certain amounts
14 to a taxpayer’s income or to provide complete
15 information in a tax return is negligence for which a
16 penalty may be imposed; authorizing the Department of
17 Revenue to adopt rules; specifying the applicability
18 of the act; providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Section 220.13, Florida Statutes, is amended to
23 read:
24 220.13 “Adjusted federal income” defined; transactions with
25 related entities.—
26 (1) ADJUSTMENTS TO TAXABLE INCOME.—The term “adjusted
27 federal income” means an amount equal to the taxpayer’s taxable
28 income as defined in subsection (2), or such taxable income of
29 more than one taxpayer as provided in s. 220.131, for the
30 taxable year, adjusted as follows:
31 (a) Additions.—There shall be added to such taxable income:
32 1. The amount of any tax upon or measured by income,
33 excluding taxes based on gross receipts or revenues, paid or
34 accrued as a liability to the District of Columbia or any state
35 of the United States which is deductible from gross income in
36 the computation of taxable income for the taxable year.
37 2. The amount of interest which is excluded from taxable
38 income under s. 103(a) of the Internal Revenue Code or any other
39 federal law, less the associated expenses disallowed in the
40 computation of taxable income under s. 265 of the Internal
41 Revenue Code or any other law, excluding 60 percent of any
42 amounts included in alternative minimum taxable income, as
43 defined in s. 55(b)(2) of the Internal Revenue Code, if the
44 taxpayer pays tax under s. 220.11(3).
45 3. In the case of a regulated investment company or real
46 estate investment trust, an amount equal to the excess of the
47 net long-term capital gain for the taxable year over the amount
48 of the capital gain dividends attributable to the taxable year.
49 4. That portion of the wages or salaries paid or incurred
50 for the taxable year which is equal to the amount of the credit
51 allowable for the taxable year under s. 220.181. This
52 subparagraph shall expire on the date specified in s. 290.016
53 for the expiration of the Florida Enterprise Zone Act.
54 5. That portion of the ad valorem school taxes paid or
55 incurred for the taxable year which is equal to the amount of
56 the credit allowable for the taxable year under s. 220.182. This
57 subparagraph shall expire on the date specified in s. 290.016
58 for the expiration of the Florida Enterprise Zone Act.
59 6. The amount of emergency excise tax paid or accrued as a
60 liability to this state under chapter 221 which tax is
61 deductible from gross income in the computation of taxable
62 income for the taxable year.
63 7. That portion of assessments to fund a guaranty
64 association incurred for the taxable year which is equal to the
65 amount of the credit allowable for the taxable year.
66 8. In the case of a nonprofit corporation that which holds
67 a pari-mutuel permit and which is exempt from federal income tax
68 as a farmers’ cooperative, an amount equal to the excess of the
69 gross income attributable to the pari-mutuel operations over the
70 attributable expenses for the taxable year.
71 9. The amount taken as a credit for the taxable year under
72 s. 220.1895.
73 10. Up to nine percent of the eligible basis of any
74 designated project which is equal to the credit allowable for
75 the taxable year under s. 220.185.
76 11. The amount taken as a credit for the taxable year under
77 s. 220.1875. The addition in this subparagraph is intended to
78 ensure that the same amount is not allowed for the tax purposes
79 of this state as both a deduction from income and a credit
80 against the tax. This addition is not intended to result in
81 adding the same expense back to income more than once.
82 12. The amount taken as a credit for the taxable year under
83 s. 220.192.
84 13. The amount taken as a credit for the taxable year under
85 s. 220.193.
86 14. Any portion of a qualified investment, as defined in s.
87 288.9913, which is claimed as a deduction by the taxpayer and
88 taken as a credit against income tax pursuant to s. 288.9916.
89 15. The costs to acquire a tax credit pursuant to s.
90 288.1254(5) which that are deducted from or otherwise reduce
91 federal taxable income for the taxable year.
92 (b) Subtractions.—
93 1. There shall be subtracted from such taxable income:
94 a. The net operating loss deduction allowable for federal
95 income tax purposes under s. 172 of the Internal Revenue Code
96 for the taxable year,
97 b. The net capital loss allowable for federal income tax
98 purposes under s. 1212 of the Internal Revenue Code for the
99 taxable year,
100 c. The excess charitable contribution deduction allowable
101 for federal income tax purposes under s. 170(d)(2) of the
102 Internal Revenue Code for the taxable year, and
103 d. The excess contributions deductions allowable for
104 federal income tax purposes under s. 404 of the Internal Revenue
105 Code for the taxable year.
106
107 However, a net operating loss and a capital loss shall never be
108 carried back as a deduction to a prior taxable year, but all
109 deductions attributable to such losses shall be deemed net
110 operating loss carryovers and capital loss carryovers,
111 respectively, and treated in the same manner, to the same
112 extent, and for the same time periods as are prescribed for such
113 carryovers in ss. 172 and 1212, respectively, of the Internal
114 Revenue Code.
115 2. There shall be subtracted from such taxable income any
116 amount to the extent included therein the following:
117 a. Dividends treated as received from sources without the
118 United States, as determined under s. 862 of the Internal
119 Revenue Code.
120 b. All amounts included in taxable income under s. 78 or s.
121 951 of the Internal Revenue Code.
122
123 However, as to any amount subtracted under this subparagraph,
124 there shall be added to such taxable income all expenses
125 deducted on the taxpayer’s return for the taxable year which are
126 attributable, directly or indirectly, to such subtracted amount.
127 Further, no amount shall be subtracted with respect to dividends
128 paid or deemed paid by a Domestic International Sales
129 Corporation.
130 3. In computing “adjusted federal income” for taxable years
131 beginning after December 31, 1976, there shall be allowed as a
132 deduction the amount of wages and salaries paid or incurred
133 within this state for the taxable year for which no deduction is
134 allowed pursuant to s. 280C(a) of the Internal Revenue Code
135 (relating to credit for employment of certain new employees).
136 4. There shall be subtracted from such taxable income any
137 amount of nonbusiness income included therein.
138 5. There shall be subtracted any amount of taxes of foreign
139 countries allowable as credits for taxable years beginning on or
140 after September 1, 1985, under s. 901 of the Internal Revenue
141 Code to any corporation that which derived less than 20 percent
142 of its gross income or loss for its taxable year ended in 1984
143 from sources within the United States, as described in s.
144 861(a)(2)(A) of the Internal Revenue Code, not including credits
145 allowed under ss. 902 and 960 of the Internal Revenue Code,
146 withholding taxes on dividends within the meaning of sub
147 subparagraph 2.a., and withholding taxes on royalties, interest,
148 technical service fees, and capital gains.
149 6. Notwithstanding any other provision of this code, except
150 with respect to amounts subtracted pursuant to subparagraphs 1.
151 and 3., any increment of any apportionment factor which is
152 directly related to an increment of gross receipts or income
153 which is deducted, subtracted, or otherwise excluded in
154 determining adjusted federal income shall be excluded from both
155 the numerator and denominator of such apportionment factor.
156 Further, all valuations made for apportionment factor purposes
157 shall be made on a basis consistent with the taxpayer’s method
158 of accounting for federal income tax purposes.
159 (c) Installment sales occurring after October 19, 1980.—
160 1. In the case of any disposition made after October 19,
161 1980, the income from an installment sale shall be taken into
162 account for the purposes of this code in the same manner that
163 such income is taken into account for federal income tax
164 purposes.
165 2. Any taxpayer who regularly sells or otherwise disposes
166 of personal property on the installment plan and reports the
167 income therefrom on the installment method for federal income
168 tax purposes under s. 453(a) of the Internal Revenue Code shall
169 report such income in the same manner under this code.
170 (d) Nonallowable deductions.—A deduction for net operating
171 losses, net capital losses, or excess contributions deductions
172 under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
173 Code which has been allowed in a prior taxable year for Florida
174 tax purposes shall not be allowed for Florida tax purposes,
175 notwithstanding the fact that such deduction has not been fully
176 utilized for federal tax purposes.
177 (e) Adjustments related to the Federal Economic Stimulus
178 Act of 2008 and the American Recovery and Reinvestment Act of
179 2009.—Taxpayers shall be required to make the adjustments
180 prescribed in this paragraph for Florida tax purposes in
181 relation to certain tax benefits received pursuant to the
182 Economic Stimulus Act of 2008 and the American Recovery and
183 Reinvestment Act of 2009.
184 1. There shall be added to such taxable income an amount
185 equal to 100 percent of any amount deducted for federal income
186 tax purposes as bonus depreciation for the taxable year pursuant
187 to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
188 amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
189 No. 111-5, for property placed in service after December 31,
190 2007, and before January 1, 2010. For the taxable year and for
191 each of the 6 subsequent taxable years, there shall be
192 subtracted from such taxable income an amount equal to one
193 seventh of the amount by which taxable income was increased
194 pursuant to this subparagraph, notwithstanding any sale or other
195 disposition of the property that is the subject of the
196 adjustments and regardless of whether such property remains in
197 service in the hands of the taxpayer.
198 2. There shall be added to such taxable income an amount
199 equal to 100 percent of any amount in excess of $128,000
200 deducted for federal income tax purposes for the taxable year
201 pursuant to s. 179 of the Internal Revenue Code of 1986, as
202 amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
203 No. 111-5, for taxable years beginning after December 31, 2007,
204 and before January 1, 2010. For the taxable year and for each of
205 the 6 subsequent taxable years, there shall be subtracted from
206 such taxable income one-seventh of the amount by which taxable
207 income was increased pursuant to this subparagraph,
208 notwithstanding any sale or other disposition of the property
209 that is the subject of the adjustments and regardless of whether
210 such property remains in service in the hands of the taxpayer.
211 3. There shall be added to such taxable income an amount
212 equal to the amount of deferred income not included in such
213 taxable income pursuant to s. 108(i)(1) of the Internal Revenue
214 Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
215 shall be subtracted from such taxable income an amount equal to
216 the amount of deferred income included in such taxable income
217 pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
218 as amended by s. 1231 of Pub. L. No. 111-5.
219 4. Subtractions available under this paragraph may be
220 transferred to the surviving or acquiring entity following a
221 merger or acquisition and used in the same manner and with the
222 same limitations as specified by this paragraph.
223 5. The additions and subtractions specified in this
224 paragraph are intended to adjust taxable income for Florida tax
225 purposes, and, notwithstanding any other provision of this code,
226 such additions and subtractions shall be permitted to change a
227 taxpayer’s net operating loss for Florida tax purposes.
228 (2) DEFINITIONS.—For purposes of this section, a taxpayer’s
229 taxable income for the taxable year means taxable income as
230 defined in s. 63 of the Internal Revenue Code and properly
231 reportable for federal income tax purposes for the taxable year,
232 but subject to the limitations set forth in paragraph (1)(b)
233 with respect to the deductions provided by ss. 172 (relating to
234 net operating losses), 170(d)(2) (relating to excess charitable
235 contributions), 404(a)(1)(D) (relating to excess pension trust
236 contributions), 404(a)(3)(A) and (B) (to the extent relating to
237 excess stock bonus and profit-sharing trust contributions), and
238 1212 (relating to capital losses) of the Internal Revenue Code,
239 except that, subject to the same limitations, the term:
240 (a) “Taxable income,” in the case of a life insurance
241 company subject to the tax imposed by s. 801 of the Internal
242 Revenue Code, means life insurance company taxable income;
243 however, for purposes of this code, the total of any amounts
244 subject to tax under s. 815(a)(2) of the Internal Revenue Code
245 pursuant to s. 801(c) of the Internal Revenue Code shall not
246 exceed, cumulatively, the total of any amounts determined under
247 s. 815(c)(2) of the Internal Revenue Code of 1954, as amended,
248 from January 1, 1972, to December 31, 1983;
249 (b) “Taxable income,” in the case of an insurance company
250 subject to the tax imposed by s. 831(b) of the Internal Revenue
251 Code, means taxable investment income;
252 (c) “Taxable income,” in the case of an insurance company
253 subject to the tax imposed by s. 831(a) of the Internal Revenue
254 Code, means insurance company taxable income;
255 (d) “Taxable income,” in the case of a regulated investment
256 company subject to the tax imposed by s. 852 of the Internal
257 Revenue Code, means investment company taxable income;
258 (e) “Taxable income,” in the case of a real estate
259 investment trust subject to the tax imposed by s. 857 of the
260 Internal Revenue Code, means the income subject to tax, computed
261 as provided in s. 857 of the Internal Revenue Code;
262 (f) “Taxable income,” in the case of a corporation that
263 which is a member of an affiliated group of corporations filing
264 a consolidated income tax return for the taxable year for
265 federal income tax purposes, means taxable income of such
266 corporation for federal income tax purposes as if such
267 corporation had filed a separate federal income tax return for
268 the taxable year and each preceding taxable year for which it
269 was a member of an affiliated group, unless a consolidated
270 return for the taxpayer and others is required or elected under
271 s. 220.131;
272 (g) “Taxable income,” in the case of a cooperative
273 corporation or association, means the taxable income of such
274 organization determined in accordance with the provisions of ss.
275 1381-1388 of the Internal Revenue Code;
276 (h) “Taxable income,” in the case of an organization that
277 which is exempt from the federal income tax by reason of s.
278 501(a) of the Internal Revenue Code, means its unrelated
279 business taxable income as determined under s. 512 of the
280 Internal Revenue Code;
281 (i) “Taxable income,” in the case of a corporation for
282 which there is in effect for the taxable year an election under
283 s. 1362(a) of the Internal Revenue Code, means the amounts
284 subject to tax under s. 1374 or s. 1375 of the Internal Revenue
285 Code for each taxable year;
286 (j) “Taxable income,” in the case of a limited liability
287 company, other than a limited liability company classified as a
288 partnership for federal income tax purposes, as defined in and
289 organized pursuant to chapter 608 or qualified to do business in
290 this state as a foreign limited liability company or other than
291 a similar limited liability company classified as a partnership
292 for federal income tax purposes and created as an artificial
293 entity pursuant to the statutes of the United States or any
294 other state, territory, possession, or jurisdiction, if such
295 limited liability company or similar entity is taxable as a
296 corporation for federal income tax purposes, means taxable
297 income determined as if such limited liability company were
298 required to file or had filed a federal corporate income tax
299 return under the Internal Revenue Code;
300 (k) “Taxable income,” in the case of a taxpayer liable for
301 the alternative minimum tax as defined in s. 55 of the Internal
302 Revenue Code, means the alternative minimum taxable income as
303 defined in s. 55(b)(2) of the Internal Revenue Code, less the
304 exemption amount computed under s. 55(d) of the Internal Revenue
305 Code. A taxpayer is not liable for the alternative minimum tax
306 unless the taxpayer’s federal tax return, or related federal
307 consolidated tax return, if included in a consolidated return
308 for federal tax purposes, reflect a liability on the return
309 filed for the alternative minimum tax as defined in s. 55(b)(2)
310 of the Internal Revenue Code;
311 (l) “Taxable income,” in the case of a taxpayer whose
312 taxable income is not otherwise defined in this subsection,
313 means the sum of amounts to which a tax rate specified in s. 11
314 of the Internal Revenue Code plus the amount to which a tax rate
315 specified in s. 1201(a)(2) of the Internal Revenue Code are
316 applied for federal income tax purposes.
317 (3) LIMITATIONS ON DEDUCTIONS OF INTANGIBLE EXPENSES AND
318 FEES WITH A RELATED ENTITY.—
319 (a) Definitions.—As used in this subsection, the term:
320 1. “Intangible expenses” means the following amounts to the
321 extent that these amounts are allowed as deductions in
322 determining federal taxable income under the Internal Revenue
323 Code before the application of any net operating loss deduction
324 and special deductions for the taxable year:
325 a. Expenses, losses, and costs directly or indirectly for,
326 related to, or in association with the acquisition, use,
327 maintenance, management, ownership, sale, exchange, or other
328 disposition of intangible property;
329 b. Royalty, patent, technical, trademark, and copyright
330 fees;
331 c. Licensing fees; or
332 d. Other substantially similar expenses and costs,
333 including, but not limited to, interest and losses from
334 factoring transactions.
335 2. “Intangible property” means patents, patent
336 applications, trade names, trademarks, service marks,
337 copyrights, trade secrets, and substantially similar types of
338 intangible assets.
339 3. “Interest expenses” means amounts that are allowed as
340 deductions under s. 163 of the Internal Revenue Code in
341 determining federal taxable income before the application of any
342 net operating loss deductions and special deductions for the
343 taxable year.
344 4. “Management fees” means expenses and costs paid for
345 services, including, but not limited to, management overhead,
346 management supervision, accounts receivable and payable,
347 employee benefit plans, insurance, legal, payroll, data
348 processing, purchasing, tax, financial and securities, billing,
349 accounting, reporting and compliance, or similar services, only
350 to the extent that the amounts are allowed as a deduction, cost,
351 or expense in determining taxable net income under the Internal
352 Revenue Code before the application of any net operating loss
353 deduction and special deductions for the taxable year.
354 5. “Recipient” means a related entity that is paid an item
355 of income that corresponds to an intangible expense, interest
356 expense, or management fee.
357 6. “Related entity” means an artificial entity that would
358 be a member of the taxpayer’s affiliated group under s. 1504 of
359 the Internal Revenue Code during all or any portion of the
360 taxable year using an ownership percentage of 50 percent instead
361 of 80 percent. The term includes any entity, other than a
362 natural person, which would be included in the affiliated group
363 based upon a 50 percent ownership percentage if the entity was
364 organized as a corporation.
365 (b) Additions.—Except as provided in paragraph (c), in
366 determining its adjusted federal income under this section and
367 s. 220.131, a corporation subject to tax shall add to its
368 taxable income:
369 1. Intangible expenses;
370 2. Interest expenses; and
371 3. Management fees,
372
373 paid, accrued, or incurred directly or indirectly with a related
374 entity. For income received from a pass-through entity or a
375 disregarded entity, the corporation is deemed to have received
376 its share of the income and the expenses of the pass-through
377 entity or disregarded entity for purposes of this subsection.
378 (c) Special exceptions.—Except as provided in paragraph
379 (d), the addition of intangible expenses, interest expenses, or
380 management fees otherwise required in a taxable year under this
381 subsection for a specific transaction with a related entity is
382 not required if one of the following apply:
383 1. The taxpayer and the recipient are included in the same
384 Florida consolidated tax return filed under s. 220.131 for the
385 taxable year.
386 2. The taxpayer and the executive director or his or her
387 designee agree in writing to alternative computations or
388 adjustments. The executive director or his or her designee may
389 enter into such an agreement only if the taxpayer has clearly
390 established to the satisfaction of the executive director or his
391 or her designee that the addition is unreasonable and that the
392 proposed alternative method of determining the measure of the
393 tax accurately reflects the activity, business, income, and
394 capital of the taxpayers within this state. The agreement must
395 be signed by the executive director or his or her designee. The
396 term of the agreement may not exceed 4 years.
397 3. The taxpayer makes a disclosure on its return and
398 establishes all of the following by clear and convincing
399 evidence:
400 a. The recipient was subject to an income tax or franchise
401 tax measured in whole or part by net income in its state or
402 country of commercial domicile, or in the state of commercial
403 domicile in which an intangible is required by contract to be
404 held, and
405 (I) The tax base for the income or franchise tax included
406 the intangible expense, management fee, or interest expense
407 paid, accrued, or incurred by the taxpayer;
408 (II) The aggregate effective tax rate applied was at least
409 5.5 percent;
410 (III) If the recipient is a foreign corporation, the
411 foreign nation has a comprehensive income tax treaty with the
412 United States; and
413 (IV) The recipient did not receive a credit, exemption, or
414 exclusion for the net income from its intangible income,
415 management fee income, or interest income, or the credit,
416 exemption, or exclusion received was 75 percent or less of the
417 net income.
418 b. The transaction did not have Florida tax avoidance as a
419 principle purpose.
420 c. The recipient regularly engages in the same types of
421 transactions with third parties.
422 d. The transaction was made at a commercially reasonable
423 rate and at arms-length terms similar to those with third
424 parties.
425 4. The taxpayer makes a disclosure on its return and
426 establishes all of the following by clear and convincing
427 evidence:
428 a. The related entity, during the same taxable year,
429 directly or indirectly incurred and paid the amount of the
430 intangible expense, interest expense, and management fee to a
431 person or entity that is not a related entity.
432 b. The transaction was done for a valid business purpose.
433 c. The payments were limited to reimbursement of the
434 amounts paid to a person or entity that is not a related entity.
435 d. The unrelated person or entity regularly engages in the
436 same types of transactions with third parties on a substantial
437 basis.
438 (d) Limitation on special exceptions.—The exceptions
439 described in subparagraphs (c)3. and (c)4. do not apply to:
440 1. Interest paid by a taxpayer in connection with a debt
441 incurred to acquire the taxpayer’s or a related entity’s assets
442 or stock in a transaction referenced in s. 368 of the Internal
443 Revenue Code. For purposes of this subparagraph, acquisition
444 interest paid by a taxpayer to a person or entity that is not a
445 related entity is deemed to be made to a related entity.
446 2. Intangible property acquired directly or indirectly from
447 the taxpayer or from a related entity.
448 3. Those instances in which the related entity is primarily
449 engaged in managing, acquiring, or maintaining intangible
450 property or related-party financing and a primary purpose of the
451 transaction was the avoidance of Florida tax.
452 4. Those instances in which the taxpayer files with the
453 related entity or the related entity files with another related
454 entity an income tax return or report and the return or report
455 is due because of the imposition of a tax on or measured by
456 income or the income tax return or report results in the
457 elimination of the tax effects from transactions directly or
458 indirectly between the taxpayer and the related member.
459 (e) Adjustment to the taxable income of a related entity.
460 To the extent that a taxpayer is required to make an adjustment
461 under paragraph (b) or paragraph (c) for a specific related
462 entity transaction, the corresponding related entity must make a
463 corresponding subtraction to its taxable income if the income of
464 the related entity is subject to tax in this state.
465 (f) Adjustment of net operating loss carryover.—The amount
466 of a taxpayer’s net operating loss carryover from tax years
467 ending before December 31, 2011, to a tax year ending on or
468 after December 31, 2011, must be adjusted to account for the
469 addition of intangible expenses, interest expenses, and
470 management fees under this subsection. However, this calculation
471 may not increase the amount of a net operating loss carryover.
472 (g) Limitation on additions to income.—This subsection does
473 not require a taxpayer to add to its Florida taxable income more
474 than once any amount of interest expenses, intangible expenses,
475 or management fees that the taxpayer pays, accrues, or incurs to
476 a related entity.
477 (h) Limitations on subtractions to income.—This subsection
478 does not allow any item to be subtracted from adjusted federal
479 income more than once a subtraction for any item that is
480 excluded from income, or any item to be included in the adjusted
481 federal income of more than one taxpayer.
482 (i) Authority to make adjustments.—This subsection does not
483 limit or negate the authority of the executive director to make
484 adjustments under s. 220.131(2), s. 220.44, or s. 220.152.
485 (j) Required information for a return.—Each taxpayer shall
486 provide the following information to the department along with
487 its tax return regarding each related entity transaction:
488 1. The name of the recipient;
489 2. The state or country of domicile of the recipient;
490 3. The amount paid to the recipient; and
491 4. A complete description of the payment made to the
492 recipient.
493 (k) Negligence.—The failure of a taxpayer to add to its
494 income an amount paid directly or indirectly to a related party
495 or to provide complete information along with the tax return is
496 evidence of negligence within the meaning of s. 220.803(1).
497 (l) Rulemaking.—The department may adopt rules and forms
498 necessary to administer this subsection, including, but not
499 limited to, forms and rules for reporting transactions with
500 related entities.
501 Section 2. This act shall take effect upon becoming a law,
502 and applies to tax years ending on or after December 31, 2011.
