§ 1515. Returns. (a) Every taxpayer and every other foreign and alien
insurance corporation having an employee, including any officer, in this
state or having an agent or representative in this state, shall
annually, on or before the fifteenth day of the third month following
the close of its taxable year, for taxable years beginning before
January first, two thousand sixteen, and on or before the fifteenth day
of the fourth month following the close of its taxable year, for taxable
years beginning on or after January first, two thousand sixteen,
transmit to the commissioner a return in a form prescribed by the
commissioner setting forth such information as the commissioner may
prescribe and every taxpayer which ceases to exercise its franchise or
to be subject to the tax imposed by this article shall transmit to the
commissioner a return on the date of such cessation or at such other
time as the commissioner may require covering each year or period for
which no return was theretofore filed. A copy of each return required
under this subdivision shall also be transmitted to the superintendent
of financial services at or before the times specified for filing such
returns with the commissioner.

(b) Every taxpayer shall also transmit such other returns and such
facts and information as the tax commission may require in the
administration of this article.

(c) The tax commission may grant a reasonable extension of time for
filing returns whenever good cause exists. An automatic extension of six
months for the filing of its annual return shall be allowed any
taxpayer, if within the time prescribed by subdivision (a), such
taxpayer files with the tax commission an application for extension in
such form as said commission may prescribe and pays on or before the
date of such filing the amount properly estimated as its tax.

(d) Every return shall have annexed thereto a certification by the
president, vice president, treasurer, assistant treasurer, chief
accounting officer or any other officer of the taxpayer duly authorized
so to act to the effect that the statements contained therein are true.
The fact that an individual's name is signed on a certification of the
return shall be prima facie evidence that such individual is authorized
to sign and certify the return on behalf of the corporation.

(e) Report of changed or corrected federal income or final
determination of refund or credit of retaliatory taxes or other
charges.-- (1) If the amount of the life insurance company taxable
income (which shall include, in the case of a stock life insurance
company which has an existing policyholders surplus account, the amount
of direct and indirect distributions during the taxable year to
shareholders from such account), taxable income of a partnership or
taxable income, as the case may be, or alternative minimum taxable
income for any year of any taxpayer as returned to the United States
treasury department is changed or corrected by the commissioner of
internal revenue or other officer of the United States or other
competent authority, such taxpayer shall report such change or corrected
taxable income or alternative minimum taxable income within ninety days
(or one hundred twenty days, in the case of a taxpayer making a combined
return under this article for such year) after the final determination
of such change or correction or as required by the commissioner, and
shall concede the accuracy of such determination or state wherein it is
erroneous. Any taxpayer filing an amended return with such department
shall also file within ninety days (or one hundred twenty days, in the
case of a taxpayer making a combined return under this article for such
year) thereafter an amended return with the commissioner which shall
contain such information as the commissioner shall require. The
allowance of a tentative carryback adjustment based upon a net operating
loss carryback or net capital loss carryback pursuant to section
sixty-four hundred eleven of the internal revenue code or upon an
operations loss carryback pursuant to section eight hundred ten of the
internal revenue code, shall be treated as a final determination for
purposes of this subdivision.

(2) If a taxpayer has paid taxes to another state pursuant to a
statute similar to section one thousand one hundred twelve of the
insurance law or any other statute or regulation of another state under
which retaliatory taxes or other charges were imposed or assessed, for
which taxes or charges paid the taxpayer has been allowed a credit
pursuant to subdivision (c) of section fifteen hundred eleven of this
article, and thereafter such taxes or charges are adjudged by a court of
competent jurisdiction or other competent authority to have been
erroneously paid or illegally or unconstitutionally imposed and, after
exhaustion of all further judicial review there is a final determination
that a refund or credit is due the taxpayer, such taxpayer shall report
such final determination, along with the amount refunded or credited or
to be refunded or credited, within ninety days of its issuance or as
required by the tax commission.

(f) (1) Any taxpayer, which owns or controls either directly or
indirectly substantially all the capital stock of one or more other
corporations, or substantially all the capital stock of which is owned
or controlled either directly or indirectly by one or more other
corporations or by interests which own or control either directly or
indirectly substantially all the capital stock of one or more other
corporations, (hereinafter referred to in this paragraph as "related
corporations"), shall make a combined return with any related
corporations if there are substantial intercorporate transactions among
the related corporations, regardless of the transfer price for such
intercorporate transactions. It is not necessary that there be
substantial intercorporate transactions between any one corporation and
every other related corporation. It is necessary, however, that there be
substantial intercorporate transactions between the taxpayer and a
related corporation or collectively, a group of such related
corporations. The return shall set forth such information as the
commissioner may require.

(2) In determining whether there are substantial intercorporate
transactions, the commissioner shall consider and evaluate all
activities and transactions of the taxpayer and its related
corporations. Activities and transactions that will be considered
include, but are not limited to: (i) manufacturing, acquiring goods or
property, or performing services, for related corporations; (ii) selling
goods acquired from related corporations; (iii) financing sales of
related corporations; (iv) performing related customer services using
common facilities and employees for related corporations; (v) selling
policies or contracts of insurance for related corporations; (vi)
reinsuring risks for related corporations; (vii) collecting premiums or
other consideration for any policy or contract of insurance for related
corporations; (viii) incurring expenses that benefit, directly or
indirectly, one or more related corporations and (ix) transferring
assets, including such assets as accounts receivable, patents or
trademarks from one or more related corporations.

(3) Except as provided in paragraph one of this subdivision, no
combined return covering any corporation shall be required unless the
commissioner deems such return necessary because of intercompany
transactions or some agreement, understanding, arrangement or
transaction referred to in subdivision (g) of this section, in order
properly to reflect the tax liability under this article.

(4)(i) For purposes of this paragraph, the term "closest controlling
stockholder" means the corporation that indirectly owns or controls over
fifty percent of the voting stock of a captive REIT or captive RIC, is
subject to tax under section fifteen hundred one of this article or
article nine-A of this chapter or required to be included in a combined
return or report under this article or article nine-A of this chapter,
and is the fewest tiers of corporations away in the ownership structure
from the captive REIT or captive RIC. The commissioner is authorized to
prescribe by regulation or published guidance the criteria for
determining the closest controlling stockholder.

(ii) A captive REIT or a captive RIC must be included in a combined
return with the corporation that directly owns or controls over fifty
percent of the voting stock of the captive REIT or captive RIC if that
corporation is a life insurance corporation and is subject to tax or
required to be included in a combined return under this article.

(iii) If over fifty percent of the voting stock of a captive REIT or
captive RIC is not directly owned or controlled by a life insurance
corporation that is subject to tax or required to be included in a
combined return under this article, and the closest controlling
stockholder of the captive REIT or captive RIC is a life insurance
corporation that is subject to tax or required to be included in a
combined return under this article, then the captive REIT or captive RIC
must be included in a combined return with the closest controlling
stockholder under this article.

(iv) If a captive REIT owns the stock of a qualified REIT subsidiary
(as defined in paragraph two of subsection (i) of section eight hundred
fifty-six of the internal revenue code) and the captive REIT is required
to be included in a combined return under subparagraphs (ii) or (iii) of
this paragraph, then the qualified REIT subsidiary must be included in
any combined return required to be made by the captive REIT that owns
the stock of the qualified REIT subsidiary.

(v) If a captive REIT or a captive RIC is required under this
paragraph to be included in a combined return with another corporation,
and that other corporation is required to be included in a combined
return with another corporation under this subdivision, then the captive
REIT or the captive RIC must be included in that combined return with
the other corporation.

(5)(i) In the case of a combined return, the tax shall be measured by
the combined entire net income or combined capital of all the
corporations included in the return, including any captive REIT or
captive RIC. In computing combined entire net income intercorporate
dividends shall be eliminated, in computing combined business and
investment capital intercorporate stockholdings and intercorporate
bills, notes and accounts receivable and payable and other
intercorporate indebtedness shall be eliminated and in computing
combined subsidiary capital intercorporate stockholdings shall be
eliminated. No taxpayer subject to the tax imposed by section fifteen
hundred two-a or section fifteen hundred two-b of this article may be
required or permitted to be included in a combined return.

(ii) In the case of a captive REIT required under this subdivision to
be included in a combined return, "entire net income" means "real estate
investment trust taxable income" as defined in paragraph two of
subdivision (b) of section eight hundred fifty-seven (as modified by
section eight hundred fifty-eight) of the internal revenue code, plus
the amount taxable under paragraph three of subdivision (b) of section
eight hundred fifty-seven of that code, subject to the modifications
required by section fifteen hundred three of this article. In the case
of a captive RIC required under this subdivision to be included in a
combined return, "entire net income" means "investment company taxable
income" as defined in paragraph two of subdivision (b) of section eight
hundred fifty-two (as modified by section eight hundred fifty-five) of
the internal revenue code, plus the amount taxable under paragraph three
of subdivision (b) of section eight hundred fifty-two of that code,
subject to the modifications required by section fifteen hundred three
of this article. However, the deduction under the internal revenue code
for dividends paid by the captive REIT or captive RIC to any member of
the affiliated group that includes the corporation that directly or
indirectly owns over fifty percent of the voting stock of the captive
REIT or captive RIC shall not be allowed. The term "affiliated group"
means "affiliated group" as defined in section fifteen hundred four of
the internal revenue code, but without regard to the exceptions provided
for in subsection (b) of that section.

(g) In case it shall appear to the tax commission that any agreement,
understanding or arrangement exists between the taxpayer and any other
corporation, or any person or firm whereby the activity, business,
income or capital of the taxpayer within the state is improperly or
inaccurately reflected, the tax commission is authorized and empowered
in its discretion and in such manner as it may determine, to adjust
items of income, deductions and capital and to eliminate items entering
into the computing of any allocation percentage, provided only that
income directly traceable thereto be also excluded from entire net
income, so as equitably to determine the tax. Where (a) any taxpayer
conducts its activity or business under any agreement, arrangement or
understanding in such manner as either directly or indirectly to benefit
its members or stockholders, or any of them, or any person or persons
directly or indirectly interested in such activity or business, by
entering into any transaction at more or less than a fair price which,
but for such agreement, arrangement or understanding, might have been
paid or received therefor, or (b) any taxpayer, a substantial portion of
whose capital stock is owned either directly or indirectly by another
corporation, enters into any transaction with such other corporation on
such terms as to create an improper loss or net income, the tax
commission may include in entire net income the fair profits, which, but
for such agreement, arrangement or understanding, the taxpayer might
have derived from such transaction.