Revenue Committee
Filed: 2/22/2008
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1 | AMENDMENT TO HOUSE BILL 4454
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2 | AMENDMENT NO. ______. Amend House Bill 4454 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 404 as follows:
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6 | (35 ILCS 5/404) (from Ch. 120, par. 4-404)
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7 | Sec. 404. Reallocation of Items.
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8 | (a) If it appears to the Director that any agreement, | ||||||
9 | understanding or
arrangement exists between any persons which | ||||||
10 | causes any person's base
income allocable to this State to be | ||||||
11 | improperly or inaccurately reflected,
the Director may adjust | ||||||
12 | such items of income and deduction, and any factor
taken into | ||||||
13 | account in allocating non-business income to this State, to | ||||||
14 | such extent as
may reasonably be required to determine the base | ||||||
15 | income of such person
properly allocable to this State. Unless | ||||||
16 | the principal purpose of the agreement, understanding, or
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1 | arrangement is for the avoidance of federal or State income | ||||||
2 | tax, any adjustment under this Section must be made in | ||||||
3 | accordance with Section 482 of the Internal Revenue Code, as | ||||||
4 | amended, and any applicable federal regulations. | ||||||
5 | (b) In making an adjustment under this Section for any | ||||||
6 | taxable year, the Director must apply the provisions of this | ||||||
7 | Act in the manner in which they were in effect during that | ||||||
8 | taxable year, unless otherwise specifically authorized by | ||||||
9 | statute. | ||||||
10 | (c) Notwithstanding any other rulemaking authority that | ||||||
11 | may exist, neither the Governor nor any agency or agency head | ||||||
12 | under the jurisdiction of the Governor has any authority to | ||||||
13 | make or promulgate rules to implement or enforce the provisions | ||||||
14 | of this amendatory Act of the 95th General Assembly. If, | ||||||
15 | however, the Governor believes that rules are necessary to | ||||||
16 | implement or enforce the provisions of this amendatory Act of | ||||||
17 | the 95th General Assembly, the Governor may suggest rules to | ||||||
18 | the General Assembly by filing them with the Clerk of the House | ||||||
19 | and Secretary of the Senate and by requesting that the General | ||||||
20 | Assembly authorize such rulemaking by law, enact those | ||||||
21 | suggested rules into law, or take any other appropriate action | ||||||
22 | in the General Assembly's discretion. Nothing contained in this | ||||||
23 | amendatory Act of the 95th General Assembly shall be | ||||||
24 | interpreted to grant rulemaking authority under any other | ||||||
25 | Illinois statute where such authority is not otherwise | ||||||
26 | explicitly given. For the purposes of this subsection, "rules" |
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1 | is given the meaning contained in Section 1-70 of the Illinois | ||||||
2 | Administrative Procedure Act, and "agency" and "agency head" | ||||||
3 | are given the meanings contained in Sections 1-20 and 1-25 of | ||||||
4 | the Illinois Administrative Procedure Act to the extent that | ||||||
5 | such definitions apply to agencies or agency heads under the | ||||||
6 | jurisdiction of the Governor.
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7 | (Source: P.A. 76-261.)
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.".
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