PA
Pennsylvania House Bill HB1462

Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB1462

Introduced
6/27/23  

Caption

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

Impact

The bill's provisions concerning a unitary business operation will significantly alter how corporations manage their tax reporting obligations. By requiring corporations belonging to a unified business group to file as a single entity, HB1462 aims to minimize instances of tax avoidance strategies that leverage separate entries for related entities. The changes are projected to enhance the tax revenue collection process and streamline tax calculations, ultimately influencing the state’s economic landscape and corporate governance standards.

Summary

House Bill 1462 seeks to amend Pennsylvania's Tax Reform Code concerning corporate net income tax by further defining tax reporting and payment processes for entities classified as part of a unitary business. The bill introduces specific language around combined unitary income, requiring that a unitary business consisting of multiple corporations file a combined annual report, thereby consolidating tax liabilities under a single entity. This approach is intended to increase coherence in tax reporting and ensure that income generated from multiple entities can be accurately tracked and taxed accordingly.

Sentiment

Discussions surrounding HB1462 indicate a general sentiment of cautious optimism among proponents who believe that the bill will simplify corporate tax obligations and reduce fraud. However, there are critical voices expressing concern that the increased regulatory framework could impose additional burdens on small businesses and complicate compliance in the long run. The bill embodies a balancing act of ensuring fairness in taxation versus potentially limiting the operational flexibility of firms within Pennsylvania.

Contention

Notable points of contention have emerged surrounding the definitions of members within a unitary business and the implications of strict compliance with combined reporting. Critics argue that the bill may disadvantage smaller entities within a larger corporate group by merging liabilities and complicating the allocation of tax responsibilities among different operations. Furthermore, discussions regarding the definition of 'tax haven' and how it applies within this context has sparked debate, with some advocating for clearer guidelines to prevent exploitation while others worry about unfair scrutiny of legitimate international business transactions.

Latest PA HB1462 Activity

View All Events: PA 2023-2024 Regular Session HB1462

Companion Bills

No companion bills found.

Previously Filed As

PA SB656

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA SB161

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1610

In personal income tax, further providing for definitions and for income taxes imposed by other states and providing for provisions for overtime pay; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations, inquisitorial powers of the department, for retention of records and for penalties; in tax credit and tax benefit administration, further providing for definitions and providing for application of tax credits or tax benefits to a unitary business; providing for working Pennsylvanians tax credit; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB2422

In corporate net income tax, further providing for definitions.

PA HB60

In corporate net income tax, further providing for definitions.

PA HB2440

In corporate net income tax, further providing for definitions.

PA HB2395

In corporate net income tax, further providing for definitions.

PA HB1483

In corporate net income tax, further providing for definitions.

Similar Bills

PA SB656

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA SB161

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

CA AB1814

Transportation.

CA SB848

Transportation.

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

OR SB419

Relating to taxation of multinational corporations; prescribing an effective date.

OR HB2674

Relating to taxation of multinational corporations; prescribing an effective date.

CA AB310

Wealth tax.