Bulletin #35

Taxpayers' Information Service
October 1, 1987

This Bulletin is obsoleted by AN 94(6)

The July Special Session of the 1987 Connecticut General Assembly enacted Public Act 87-1, which exempts from the Sales Tax services rendered by a parent company to a wholly-owned (100%) subsidiary and services rendered by wholly-owned (100%) brother and sister corporations.

In order to qualify for the Sales Tax exemption for certain services rendered, the law provides:

  1. either corporation in such transaction owns or controls either directly or indirectly not less than one hundred percent (100%) of the capital stock of the other corporation; or
  2. either corporation in such transaction is owned or controlled either directly or indirectly by interests which own or control either directly or indirectly not less than one hundred percent (100%) of the capital stock of the other corporation; and
  3. The transaction is rendered for the purpose of expense allocation and not for profit.

This exemption is applicable to taxable services rendered from July 1, 1982 through June 30, 1988, inclusive.

Attached is a form (Form OP-269) which is required to be completed for a refund claim by qualifying Taxpayers. The attached form will be the only form recognized by the Department for claiming a refund.

In addition, the completed form claiming a refund of Sales Tax paid must be filed within ninety (90) days from the notification date of November 1, 1987. The statutory period of ninety days is mandatory and cannot be extended for any reason.

The statutory date for notification is November 1, 1987 and the claim for refund period ends on January 29, 1988.

Attachment


PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page at http://www.ct.gov/drs or through the Department's fax retrieval system by calling the DRS TAX-FAX at 860-297-5698 from the handset attached to your fax machine. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.