ROBERT L. EHRLICH, JR., Governor                             Ch. 556

AMONG TWO OR MORE ORGANIZATIONS, TRADES, OR BUSINESSES, WHETHER OR NOT
INCORPORATED, WHETHER OR NOT ORGANIZED IN THE UNITED STATES, AND
WHETHER OR NOT AFFILIATED, IF:

(1)      THE ORGANIZATIONS, TRADES, OR BUSINESSES ARE OWNED OR
CONTROLLED DIRECTLY OR INDIRECTLY BY THE SAME INTERESTS WITHIN THE
MEANING OF § 482 OF THE INTERNAL REVENUE CODE; AND

(2)      THE COMPTROLLER DETERMINES THAT THE DISTRIBUTION,
APPORTIONMENT, OR ALLOCATION IS NECESSARY IN ORDER TO REFLECT AN ARM'S
LENGTH STANDARD WITHIN THE MEANING OF § 1.482-1 OF THE REGULATIONS OF
THE INTERNAL REVENUE SERVICE OF THE U.S. TREASURY AND TO REFLECT
CLEARLY THE INCOME OF THOSE ORGANIZATIONS, TRADES, OR BUSINESSES.

(B) THE COMPTROLLER SHALL APPLY THE ADMINISTRATIVE AND JUDICIAL
INTERPRETATIONS OF § 482 OF THE INTERNAL REVENUE CODE IN ADMINISTERING
THIS SECTION.

10-306.1.

(A) , (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "AGGREGATE EFFECTIVE TAX RATE" MEANS THE SUM OF THE
EFFECTIVE RATES OF TAX IMPOSED BY ALL STATES, INCLUDING THIS STATE AND
OTHER STATES OR POSSESSIONS OF THE UNITED STATES, WHERE A RELATED
MEMBER RECEIVING A PAYMENT OF INTEREST EXPENSE OR INTANGIBLE EXPENSE
IS SUBJECT TO TAX AND WHERE THE MEASURE OF THE TAX IMPOSED INCLUDED
THE PAYMENT.

(2) (3) "BANK" MEANS:

(I)      A BANK HOLDING COMPANY AS DEFINED IN THE FEDERAL
BANK HOLDING COMPANY ACT OF 1956, AS AMENDED, OR A BANK, TRUST COMPANY,
SAVINGS BANK, OR SAVINGS AND LOAN ASSOCIATION INCORPORATED OR
CHARTERED UNDER THE LAWS OF THIS STATE, ANOTHER STATE, OR THE UNITED
STATES; OR

(II)     A SUBSIDIARY OR AFFILIATE OF AN ENTITY DESCRIBED IN
ITEM (I) OF THIS PARAGRAPH.

(4) "EFFECTIVE RATE OF TAX IMPOSED" MEANS, AS TO ANY STATE OR
POSSESSION OF THE UNITED STATES, THE MAXIMUM STATUTORY TAX RATE
IMPOSED BY THE STATE OR POSSESSION MULTIPLIED BY THE APPLICABLE
APPORTIONMENT RATE.

(3) (5) "INTANGIBLE EXPENSE" MEANS:

(I) AN EXPENSE, LOSS, OR COST FOR, RELATED TO, OR IN
CONNECTION DIRECTLY OR INDIRECTLY WITH THE DIRECT OR INDIRECT
ACQUISITION, USE, MAINTENANCE, MANAGEMENT, OWNERSHIP, SALE, EXCHANGE,.
OR ANY OTHER DISPOSITION OF INTANGIBLE PROPERTY, TO THE EXTENT THE

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