CAT 2005-12 - Commercial Activity Tax: Request for Member of
a Combined Taxpayer Group to File Separately -- December,
This rule allows a member to request to file separately from
the combined taxpayer group if the group member agrees to
certain conditions. This rule is now final and
effective. Please direct any questions to the Commercial
Activity Tax Division of the Ohio Department of Taxation at
Rule 5703-29-08 Request for member of a combined
taxpayer group to file separately.
(A) This rule provides the procedure that a member of a
combined taxpayer group under section 5751.012 of the Revised
Code must follow to file as a separate taxpayer and not as
part of the combined group.
(B)(1) A member that is not the primary taxpayer of a
combined taxpayer group, together with the primary taxpayer
of the group, may contact the tax commissioner and request
approval that the member be allowed to file separately from
the group. For the member to file separately, the
member and the primary taxpayer must agree to all of the
(a) The member will not claim any of the group’s exclusion of
one million dollars for calendar year taxpayers or two
hundred fifty thousand dollars for calendar quarter
taxpayers, and is not entitled to claim any exclusion of the
member’s taxable gross receipts on its own behalf.
(b) The member will file as a separate taxpayer and will be
subject to the applicable tax rate on all of the member’s
taxable gross receipts without any exclusion. For example,
for the semiannual period July 1, 2005 through December 31,
2005, if a member had thirty thousand dollars of taxable
gross receipts, the tax would be eighteen dollars, the rate
of six one-hundredths percent times the entire thirty
thousand dollars of taxable gross receipts.
(c) The member is financially sound and currently able to pay
the commercial activity tax and other obligations as
determined by the commissioner.
(d) The member remains jointly and severally liable for the
group’s tax liability.
(2) The commissioner shall provide a copy of the
commissioner’s written denial or approval to both the member
requesting to file separately and to the primary taxpayer of
the combined group. If approved, the separate filing
shall start at the beginning of the next tax period for the
combined taxpayer, absent special approval to the
contrary. The commissioner, upon request, may grant
special approval for the separate filing to begin with the
current tax period.
(3) The commissioner may prescribe a form to apply to file
separately from the group as provided by this rule.
(C) The tax commissioner may revoke separate filing approval
at any time.