11.0414 Notification and assessment of Samoan income tax in the case of adjustments to United States income tax of corporation.

Cite as [A.S.C.A. 11.0414]

(a) In the case of a taxpayer that is a corporation that has engaged in a trade or business in American Samoa during a taxable year, such taxpayer(or its successor) shall report to the Treasurer of American Samoa any change or correction by the gross income, deduction, credit, or allowance as reported for such taxable year(or for a taxable year of a person described in paragraph(2) that includes such taxable year) on the United States income tax return of:

(1) the taxpayer, or

(2) any person who is related(within the meaning of section 482 of the United States Internal Revenue Code) to the taxpayer, that is attributable or otherwise related to the carrying on by the taxpayer of such trade or business in American Samoa or to the purchase, sale, lease, or other transfer of goods, services, or property or other transactions between related persons and the taxpayer in carrying on its trade or business in American Samoa. For purposes of this section, the category of items of gross income, deduction, credit, or allowance of the taxpayer or a related person that are treated as otherwise related to the carrying on by the taxpayer of its trade or business in American Samoa or to do transactions between related persons and the taxpayer in carrying on its trade or business in American Samoa shall include an item that arises out of one or more transactions involving substantially comparable goods, services, or other property undertaken between related persons and the taxpayer in carrying on a trade or business outside of American Samoa. The taxpayer shall make such report to the Treasurer of American Samoa within ninety days after the final determination of such change or correction. The taxpayer shall concede the accuracy of such determination or state wherein it is erroneous. In the event that the taxpayer or any related person files an amended United States income tax return for any taxable year with respect to any item of gross income, deduction, credit, or allowance that is attributable or otherwise related to the carrying on by the taxpayer of a trade or business in American Samoa or to the purchase, sale, lease, or other transfer of goods, services, or property or other transactions between related persons and the taxpayer in carrying on its trade or business in American Samoa, the taxpayer(or its successor) shall file within ninety days thereafter a copy of such amended United States income tax return with the Treasurer of American Samoa and shall provide such additional information as the Treasurer of American Samoa may require. The Treasurer of American Samoa is not required to accept as correct for Samoan income tax purposes any such change or correction by the Commissioner of Internal Revenue or amended United States income tax return and may conduct an independent audit or investigation with respect thereto. The Treasurer of American Samoa shall determine whether the assessment of additional Samoan income tax is appropriate under the provisions of the Samoan Income Tax Act in respect of the taxable year or years to which the report required under this subsection or the amended United States income tax return relates.

(b) Upon the making by the taxpayer of the report required under subsection(a), or the filing of the copy of the amended return as described in subsection(a), or the filing of the copy of the amended return as described in subsection(a), the Treasurer of American Samoa shall have, notwithstanding any provision of the Samoan Income Tax Act to the contrary, a period of two years following the date upon which the taxpayer makes the report required under subsection(a), or files such copy of the amended return, within which to assess upon the taxpayer such additional Samoan income tax, if any, as is appropriate under the provisions of the Samoan Income Tax Act in respect of the taxable year or years to which such report or amended return relates. The provisions of this subsection shall not affect the time within which or the amount for which an assessment otherwise may be made by the Treasurer of American Samoa.

(c) In the event that a taxpayer fails to report a change or correction by the commissioner of Internal Revenue, or fails to file the copy of the amended return, as and when required by subsection(a) hereof the assessment of additional Samoan income tax by the Treasurer of American Samoa may be made at any time, notwithstanding any provision of the Samoan Income Tax Act to the contrary.

(d) For purposes of this section:

(1) The term "report" shall include, but not be limited to, the taxpayer's name, address, and identifying number, the taxable year or years that are affected by the change or correction described in subsection(a), a listing of the names, addresses, and identifying numbers of any related persons involved in the change or correction, a description and listing of the dollar amounts of such change or correction, a copy of the final determination of such change or correction, and such other information as the Treasurer of American Samoa may prescribe.

(2) The term "final determination" shall include:

(A) the issuance of a 90-day notice of deficiency pursuant to section 6211 and 6212(or a jeopardy assessment pursuant to section 6861) of the United States Internal Revenue Code, unless a timely petition to redetermine the deficiency is filed in the United States Tax Court in which case the judgement of a court of last resort affirming or redetermining such deficiency is deemed to constitute the final determination;

(B) the assessment of a deficiency pursuant to a waiver filed under section 6212 of the United States Internal Revenue Code in the case where no 90-day notice of deficiency is issued;

(C) a closing agreement made under section 7121 of the United States Internal Revenue Code or similar agreement in compromise executed by the Commissioner of Internal Revenue and the taxpayer or related person; and

(D) an allowance by the Commissioner of Internal Revenue, or by a court of competent jurisdiction in a final judgement, on the United States income tax return of the taxpayer or related person or of any deficiency thereafter assessed.

(e)(1) This section 11.0414 shall apply to taxable years ending after 1980 as to which a final determination(within the meaning of this section) by the Commissioner of Internal Revenue or the filing of an amended United States income tax return with the Commissioner of Internal Revenue is made after December 31, 1989.

(2) The amendments made by this act shall be effective as if included in section 11.0414, as originally enacted, of the American Samoa Code Annotated and shall apply to taxable years ending after 1980 as to which a final determination(within the meaning of section 11.0414(a) of the American Samoa Code Annotated) by the Commissioner of Internal Revenue or the filing of an amended United States income tax return with the Commissioner of Internal Revenue is made after December 31, 1989; provided that in the case of a final determination or the filing of an amended United States income tax return that has been made during the period prior to the date of enactment of this act, the ninety-day period described in section 11.0414(a) of the American Samoa Code Annotated within which the taxpayer is to make its report to the Treasurer of American Samoa shall be treated as commencing on the date of enactment of this act and the two-year period described in section 11.0414(b) of such Code within which the Treasurer of American Samoa may assess additional Samoan income tax upon the making of such report by the taxpayer shall be treated as commencing on the date on which the taxpayer files such report during the period following the date of enactment of this act.

History: 1990, PL 21-37; amd 1991, 22-10.