Application for permission to use other method of allocation by corporation or nonresident; contents; effect of failure to receive notice of rejection.

If any corporation or nonresident shows by any method of allocation other than the processes or formulas prescribed by this chapter that another method reflects more clearly the income attributable to the trade or business within this state, application for permission to base its return upon the other method shall be considered by the commissioner. The application shall be accompanied by a statement setting forth in detail with full explanations the method the taxpayer believes will more clearly reflect its income from business within the state. If the commissioner concludes that the method of allocation and apportionment submitted by the taxpayer is in fact inapplicable and inequitable, he shall reject the application and shall so notify the taxpayer. Failure to receive the commissioner’s notice shall not operate to relieve the taxpayer from liability for not filing the return on its due date utilizing the allocation and apportionment method prescribed by this chapter. History. Ga. L. 1931, Ex. Sess., p. 24, § 17; Ga. L. 1931, p. 7, § 85; Code 1933, § 92-3115; Code 1933, § 91A-3613, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1987, p. 191, § 2. Editor’s notes. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, provides that this Act is applicable to taxable years ending on or after March 11, 1987, and that a taxpayer with a taxable year ending on or after January 1, 1987, and before March 11, 1987, may elect to have the provisions of that Act apply. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by that Act. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that provisions of the federal Tax Reform Act of 1986 and of the Internal Revenue Code of 1986 which as of January 1, 1987, were not yet effective become effective for purposes of Georgia taxation on the same dates as they become effective for federal purposes. Administrative rules and regulations. Alternate method of determining income, Official Compilation of the Rules and Regulations of the State of Georgia, Department of Revenue, Income Tax Division, Returns and Collections, § 560-7-8-.03. JUDICIAL DECISIONS Alternative means of computing Georgia-derived income. — Under former Code 1933, §§ 92-3114 and 92-3115 (see now O.C.G.A. §§ 48-7-34 and 48-7-35) that part of the net income of a corporation engaged in the business of manufacturing or selling tangible personal property in this state, and elsewhere, which should be allocated and apportioned to this state may be determined. This is especially true when such a corporation in the corporation’s regular business activities does not have all of the factors of the three factor formula in former Code 1933, § 92-3113 (see now O.C.G.A. § 48-7-31). State v. Coca Cola Bottling Co., 212 Ga. 630, 94 S.E.2d 708, 1956 Ga. LEXIS 475 (1956). Former Code 1933, §§ 92-3114 and 92-3115 (see now O.C.G.A. §§ 48-7-34 and 48-7-35) confer upon nonresidents and corporations the right to seek alternative methods of determining their Georgia-derived income when such methods would more accurately reflect that income than would former Code 1933, § 92-3113 (see now O.C.G.A. § 48-7-31). Henry C. Beck Co. v. Blackmon, 131 Ga. App. 634, 206 S.E.2d 842, 1974 Ga. App. LEXIS 1501 (1974), aff'd, 233 Ga. 412, 211 S.E.2d 711, 1975 Ga. LEXIS 1324 (1975). Commissioner not empowered to select basis for return when no request made. — No power is granted to the commissioner to decide personally, when no request is made, whether another formula would be more indicative of a taxpayer’s tax situation. Henry C. Beck Co. v. Blackmon, 131 Ga. App. 634, 206 S.E.2d 842, 1974 Ga. App. LEXIS 1501 (1974), aff'd, 233 Ga. 412, 211 S.E.2d 711, 1975 Ga. LEXIS 1324 (1975). OPINIONS OF THE ATTORNEY GENERAL Reasonable interpretation of section would require the taxpayer annually to file an application. 1948-49 Ga. Op. Att'y Gen. 376.