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Revenue Committee
Filed: 2/22/2008
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09500HB4454ham001 |
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LRB095 16946 BDD 45858 a |
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| AMENDMENT TO HOUSE BILL 4454
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| AMENDMENT NO. ______. Amend House Bill 4454 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Illinois Income Tax Act is amended by |
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| changing Section 404 as follows:
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| (35 ILCS 5/404) (from Ch. 120, par. 4-404)
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| Sec. 404. Reallocation of Items.
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| (a) If it appears to the Director that any agreement, |
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| understanding or
arrangement exists between any persons which |
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| causes any person's base
income allocable to this State to be |
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| improperly or inaccurately reflected,
the Director may adjust |
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| such items of income and deduction, and any factor
taken into |
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| account in allocating non-business income to this State, to |
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| such extent as
may reasonably be required to determine the base |
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| income of such person
properly allocable to this State. Unless |
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| the principal purpose of the agreement, understanding, or
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09500HB4454ham001 |
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LRB095 16946 BDD 45858 a |
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| arrangement is for the avoidance of federal or State income |
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| tax, any adjustment under this Section must be made in |
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| accordance with Section 482 of the Internal Revenue Code, as |
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| amended, and any applicable federal regulations. |
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| (b) In making an adjustment under this Section for any |
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| taxable year, the Director must apply the provisions of this |
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| Act in the manner in which they were in effect during that |
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| taxable year, unless otherwise specifically authorized by |
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| statute. |
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| (c) Notwithstanding any other rulemaking authority that |
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| may exist, neither the Governor nor any agency or agency head |
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| under the jurisdiction of the Governor has any authority to |
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| make or promulgate rules to implement or enforce the provisions |
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| of this amendatory Act of the 95th General Assembly. If, |
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| however, the Governor believes that rules are necessary to |
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| implement or enforce the provisions of this amendatory Act of |
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| the 95th General Assembly, the Governor may suggest rules to |
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| the General Assembly by filing them with the Clerk of the House |
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| and Secretary of the Senate and by requesting that the General |
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| Assembly authorize such rulemaking by law, enact those |
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| suggested rules into law, or take any other appropriate action |
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| in the General Assembly's discretion. Nothing contained in this |
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| amendatory Act of the 95th General Assembly shall be |
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| interpreted to grant rulemaking authority under any other |
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| Illinois statute where such authority is not otherwise |
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| explicitly given. For the purposes of this subsection, "rules" |
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09500HB4454ham001 |
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LRB095 16946 BDD 45858 a |
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| is given the meaning contained in Section 1-70 of the Illinois |
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| Administrative Procedure Act, and "agency" and "agency head" |
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| are given the meanings contained in Sections 1-20 and 1-25 of |
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| the Illinois Administrative Procedure Act to the extent that |
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| such definitions apply to agencies or agency heads under the |
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| jurisdiction of the Governor.
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| (Source: P.A. 76-261.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.".
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