Or. Admin. R. 150-317-0652
Example 1:Corporation XYZ reports an IRC 965 repatriation in tax year 2017 that includes $100 million of listed jurisdiction amounts that were previously included as an addition to income under ORS 317.716 for tax years 2015 and 2016. In lieu of claiming the tax credit under section 33 of SB 1529 (2018), Corporation XYZ elects to claim a modification on its 2017 return to subtract the $100 million of listed jurisdiction income that was previously included under ORS 317.716. The election is made by claiming a $100 million subtraction on Schedule OR-ASC-CORP using the subtraction code prescribed by department instructions. Use of the subtraction code prescribed by department instructions on Schedule OR-ASC-CORP signifies Corporation XYZ's election and agreement to claim the modification in lieu of the repatriation tax credit.
Example 2:Same facts as Example 1, except that after filing its original 2017 return Corporation XYZ files an amended 2017 return to change its election. The limitation period to claim a refund for tax year 2017 remains open at the time Corporation XYZ files its amended return. Corporation XYZ claims the repatriation tax credit on Schedule OR-ASC-CORP using the credit code prescribed by department instructions and removes the $100 million subtraction. Use of the credit code prescribed by department instructions on the amended Schedule OR-ASC-CORP signifies Corporation XYZ's election and agreement to claim the repatriation tax credit in lieu of the modification. Because Corporation XYZ has elected to claim the repatriation tax credit on its 2017 return in lieu of the modification, Corporation XZY is prohibited from claiming a modification on its 2017 and 2018 returns.
Example 3: Same facts as Example 2, except that Corporation XYZ was required to include $150 million of listed jurisdiction income as an addition under ORS 317.716 for tax years 2015 and 2016, and $50 million of that income is reported as an IRC 965 repatriation in tax year 2018. Because Corporation XYZ claimed the repatriation tax credit for tax year 2017 on its amended return, it may not claim a modification for tax year 2018.
Example 4: Same facts as Example 3, except that Corporation XYZ claimed the repatriation tax credit on its original Oregon return for tax year 2017 instead of a modification. In addition, Corporation XYZ did not file an amended return, Corporation XYZ's return for tax year 2017 is closed to refund or adjustment, and the return for tax year 2018 is open to refund or adjustment. Corporation XYZ may not claim a modification for tax year 2018 because Corporation XYZ claimed the repatriation tax credit on its 2017 return and the return for tax year 2017 is closed to refund or adjustment.
Example 5: For tax year 2017, Corporation XYZ has $100 million in IRC 965 repatriation income from wholly owned foreign subsidiaries, $80 million of which was previously included in income as a listed jurisdiction addition in tax year 2016. Corporation XYZ has no other income taxable as a dividend or deemed dividend for tax year 2017. Corporation XYZ elects to claim the modification under section (1) of this rule. As a result of the modification, Corporation XYZ calculates its dividend received subtraction by first subtracting the amount of the modification from the IRC 965 repatriation income for 2017 ($100 million - $80 million). Accordingly, Corporation XYZ's dividend received subtraction under ORS 317.267(2) is $16 million (80 percent of $20 million).
Or. Admin. R. 150-317-0652
Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).
Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 317.038