R15-2D-101 Definitions

In addition to the definitions provided in A.R.S. §§ 43-104, 43- 1101, and 43-1131, the following definitions apply to this Subchap- ter: “Allocation” means the assignment of nonbusiness income to a particular state. “Apportionment” means the division of business income between states by the use of a formula that contains apportion- ment factors. “Arizona affiliated group” has the same meaning as prescribed in A.R.S. § 43-947(I). “Business activity” means transactions and activity occurring in the regular course of a particular trade or business of a tax- payer. “Combined return” means a corporate income tax return filed by a group of commonly owned corporations or businesses that constitute a unitary business, except that a combined return does not include either a foreign corporation that is not itself subject to a tax imposed by A.R.S. Title 43, or an insur- ance company that is exempt under A.R.S. § 43-1201. “Consolidated return” means a corporate income tax return filed by an Arizona affiliated group under A.R.S. § 43-947. “Employee” means any officer of a corporation; or any indi- vidual who, under the usual common-law rules applicable in determining the employer-employee relationship, has the sta- tus of an employee. “Incidental to” means occurring in, or associated with, the nor- mal, typical, or customary operations of the particular trade or business under consideration. “Sales” means all gross receipts derived by a taxpayer from transactions and activity in the regular course of a trade or business and includes all gross receipts of the taxpayer not allocated under A.R.S. §§ 43-1134 through 43-1138. “Unitary business” means an entity, group of entities, or com- ponents of an entity whose basic operations are substantially integrated and interdependent. The determination of whether an entity, group of entities, or components of an entity consti- tute a unitary business is made under R15-2D-401. Historical Note Recodified at 6 A.A.R. 2308, filed in the Office of the Secretary of State June 2, 2000 (Supp. 00-2). Amended by final rulemaking at 7 A.A.R. 4973, effective October 5, 2001 (Supp. 01-4). ARTICLE 2. ADDITIONS TO ARIZONA GROSS INCOME