N.Y. Comp. Codes R. & Regs. tit. 20 § 86.1
Tax Law, § 485(a)(1)
In determining the cost of the agent, the cost of the CMSA wholesale dealer and the cost of the CMSA retail dealer, as such terms are described in Part 82 of this Title, the Department of Taxation and Finance or a court shall receive and consider as bearing on the bona fides of such costs, evidence tending to show that any person against whom a complaint has been made under any of the provisions of article 20-A of the Tax Law purchased cigarettes, with respect to the sale of which such complaint was made, at a fictitious price, or upon such terms or in such a manner or under such invoices as to conceal the true costs, discounts or terms or purchase. The department or court shall also receive and consider as bearing on the bona fides of such costs, evidence of the normal, customary and prevailing terms and discounts in connection with other sales of a similar nature in the trade area or State.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 86.1