Ch. 557                                    2004 LAWS OF MARYLAND

Article—Tax—General

10-109.

(A) FOR ORGANIZATIONS, TRADES, OR BUSINESSES DOING BUSINESS IN THE
STATE OF MARYLAND, THE COMPTROLLER MAY DISTRIBUTE, APPORTION, OR
ALLOCATE GROSS INCOME, DEDUCTIONS, CREDITS, OR ALLOWANCES BETWEEN AND
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) "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.

(3) "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
EXPENSE, LOSS, OR COST IS ALLOWED, AS A DEDUCTION OR COST IN DETERMINING
TAXABLE INCOME FOR THE TAXABLE YEAR UNDER THE INTERNAL REVENUE CODE;

(II) A LOSS RELATED TO OR INCURRED IN CONNECTION DIRECTLY
OR INDIRECTLY WITH FACTORING TRANSACTIONS OR DISCOUNTING TRANSACTIONS;

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