Terms Used In Utah Code > Title 59 > Chapter 7 > Part 1 - Corporate Tax Generally

• Adjusted income: means unadjusted income as modified by Sections 59-7-105 and 59-7-106. See Utah Code 59-7-101
• Affiliated group: means one or more chains of corporations that are connected through stock ownership with a common parent corporation that meet the following requirements:
            (2)(a)(i) at least 80% of the stock of each of the corporations in the group, excluding the common parent corporation, is owned by one or more of the other corporations in the group; and
            (2)(a)(ii) the common parent directly owns at least 80% of the stock of at least one of the corporations in the group. See Utah Code 59-7-101
• Amortization: Paying off a loan by regular installments.
• Apportionable income: means adjusted income less nonbusiness income net of related expenses, to the extent included in adjusted income. See Utah Code 59-7-101
• Apportioned income: means apportionable income multiplied by the apportionment fraction as determined in Section 59-7-311. See Utah Code 59-7-101
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
• Bequest: Property gifted by will.
• Business income: means the same as that term is defined in Section 59-7-302. See Utah Code 59-7-101
• Captive insurance company: means the same as that term is defined in Section 31A-1-301. See Utah Code 59-7-101
• Captive real estate investment trust: means a real estate investment trust if:
            (7)(a)(i) the shares or beneficial interests of the real estate investment trust are not regularly traded on an established securities market; and
            (7)(a)(ii) more than 50% of the voting power or value of the shares or beneficial interests of the real estate investment trust are directly, indirectly, or constructively:

                 (7)(a)(ii)(A) owned by a controlling entity of the real estate investment trust; or

                 (7)(a)(ii)(B) controlled by a controlling entity of the real estate investment trust. See Utah Code 59-7-101
• Common ownership: means the direct or indirect control or ownership of more than 50% of the outstanding voting stock of:
            (8)(a)(i) a parent-subsidiary controlled group as defined in Section 1563, Internal Revenue Code, except that 50% shall be substituted for 80%;
            (8)(a)(ii) a brother-sister controlled group as defined in Section 1563, Internal Revenue Code; or
            (8)(a)(iii) three or more corporations each of which is a member of a group of corporations described in Subsection (2)(a)(i) or (ii), and one of which is:

                 (8)(a)(iii)(A) a common parent corporation included in a group of corporations described in Subsection (2)(a)(i); and

                 (8)(a)(iii)(B) included in a group of corporations described in Subsection (2)(a)(ii). See Utah Code 59-7-101
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Corporation: includes :
       (11)(a) entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue Code; and
       (11)(b) other organizations that are taxed as corporations for federal income tax purposes under the Internal Revenue Code. See Utah Code 59-7-101
• Decedent: A deceased person.
• Devise: To gift property by will.
• Dividend: means any distribution, including money or other type of property, made by a corporation to its shareholders out of its earnings or profits accumulated after December 31, 1930. See Utah Code 59-7-101
• Doing business: includes any transaction in the course of business by a domestic corporation or by a foreign corporation qualified to do or doing business in this state. See Utah Code 59-7-101
• Domestic corporation: means a corporation that is incorporated or organized under the laws of this state. See Utah Code 59-7-101
• Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Foreign corporation: means a corporation that is not incorporated or organized under the laws of this state. See Utah Code 59-7-101
• Foreign operating company: means a corporation that:
            (19)(a)(i) is incorporated in the United States;
            (19)(a)(ii) conducts at least 80% of the corporation's business activity, as determined under Section 59-7-401, outside the United States; and
            (19)(a)(iii) as calculated in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions, has:

                 (19)(a)(iii)(A) at least $1,000,000 of payroll located outside the United States; and

                 (19)(a)(iii)(B) at least $2,000,000 of property located outside the United States. See Utah Code 59-7-101
• Foreign real estate investment trust: means :
            (20)(a)(i) a business entity organized outside the laws of the United States if:

                 (20)(a)(i)(A) at least 75% of the business entity's total asset value at the close of the business entity's taxable year is represented by:

                      (20)(a)(i)(A)(I) real estate assets, as defined in Section 856(c)(5)(B), Internal Revenue Code;

                      (20)(a)(i)(A)(II) cash or cash equivalents; or

                      (20)(a)(i)(A)(III) one or more securities issued or guaranteed by the United States;

                 (20)(a)(i)(B) the business entity is:

                      (20)(a)(i)(B)(I) not subject to income taxation:

                           (20)(a)(i)(B)(I)(Aa) on amounts distributed to the business entity's beneficial owners; and

                           (20)(a)(i)(B)(I)(Bb) in the jurisdiction in which the business entity is organized; or

                      (20)(a)(i)(B)(II) exempt from income taxation on an entity level in the jurisdiction in which the business entity is organized;

                 (20)(a)(i)(C) the business entity distributes at least 85% of the business entity's taxable income, as computed in the jurisdiction in which the business entity is organized, to the holders of the business entity's:

                      (20)(a)(i)(C)(I) shares or beneficial interests; and

                      (20)(a)(i)(C)(II) on an annual basis;

                 (20)(a)(i)(D)

                      (20)(a)(i)(D)(I) not more than 10% of the following is held directly, indirectly, or constructively by a single person:

                           (20)(a)(i)(D)(I)(Aa) the voting power of the business entity; or

                           (20)(a)(i)(D)(I)(Bb) the value of the shares or beneficial interests of the business entity; or

                      (20)(a)(i)(D)(II) the shares of the business entity are regularly traded on an established securities market; and

                 (20)(a)(i)(E) the business entity is organized in a country that has a tax treaty with the United States; or
            (20)(a)(ii) a listed Australian property trust. See Utah Code 59-7-101
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• Income: includes losses. See Utah Code 59-7-101
• Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
• Internal Revenue Code: means Title 26 of the United States Code as effective during the year in which Utah taxable income is determined. See Utah Code 59-7-101
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Nonbusiness income: means the same as that term is defined in Section 59-7-302. See Utah Code 59-7-101
• Person: means :
       (24)(a) an individual;
       (24)(b) an association;
       (24)(c) an institution;
       (24)(d) a corporation;
       (24)(e) a company;
       (24)(f) a trust;
       (24)(g) a limited liability company;
       (24)(h) a partnership;
       (24)(i) a political subdivision;
       (24)(j) a government office, department, division, bureau, or other body of government; and
       (24)(k) any other organization or entity. See Utah Code 68-3-12.5
• Personal property: includes :
       (25)(a) money;
       (25)(b) goods;
       (25)(c) chattels;
       (25)(d) effects;
       (25)(e) evidences of a right in action;
       (25)(f) a written instrument by which a pecuniary obligation, right, or title to property is created, acknowledged, transferred, increased, defeated, discharged, or diminished; and
       (25)(g) a right or interest in an item described in Subsections (25)(a) through (f). See Utah Code 68-3-12.5
• Personal property: All property that is not real property.
• Property: includes both real and personal property. See Utah Code 68-3-12.5
• Real estate investment trust: means the same as that term is defined in Section 856, Internal Revenue Code. See Utah Code 59-7-101
• Related expenses: means :
       (25)(a) expenses directly attributable to nonbusiness income; and
       (25)(b) the portion of interest or other expense indirectly attributable to both nonbusiness and business income that bears the same ratio to the aggregate amount of such interest or other expense, determined without regard to this Subsection (25), as the average amount of the asset producing the nonbusiness income bears to the average amount of all assets of the taxpayer within the taxable year. See Utah Code 59-7-101
• return: includes a combined report. See Utah Code 59-7-101
• S corporation: means an S corporation as defined in Section 1361, Internal Revenue Code. See Utah Code 59-7-101
• Safe harbor lease: means a lease that qualified as a safe harbor lease under Section 168, Internal Revenue Code. See Utah Code 59-7-101
• State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
• taxable year: includes the period for which such return is made. See Utah Code 59-7-101
• Taxpayer: means any corporation subject to the tax imposed by this chapter. See Utah Code 59-7-101
• Testimony: Evidence presented orally by witnesses during trials or before grand juries.
• Threshold level of business activity: means business activity in the United States equal to or greater than 20% of the corporation's total business activity as determined under Section 59-7-401. See Utah Code 59-7-101
• Unadjusted income: includes deferred foreign income described in Section 965(a), Internal Revenue Code. See Utah Code 59-7-101
• Unitary group: includes a captive real estate investment trust. See Utah Code 59-7-101
• United States: includes the 50 states and the District of Columbia. See Utah Code 59-7-101
• Utah net loss: means the current year Utah taxable income before Utah net loss deduction, if determined to be less than zero. See Utah Code 59-7-101
• Utah net loss deduction: means the amount of Utah net losses from other taxable years that a taxpayer may carry forward to the current taxable year in accordance with Section 59-7-110. See Utah Code 59-7-101
• Utah taxable income: includes income from tangible or intangible property located or having situs in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce. See Utah Code 59-7-101
• Utah taxable income before net loss deduction: means apportioned income plus nonbusiness income allocable to Utah net of related expenses. See Utah Code 59-7-101
• Worldwide combined report: means the combination of the income and activities of all members of a unitary group irrespective of the country in which the corporations are incorporated or conduct business activity. See Utah Code 59-7-101