2017 Louisiana Laws
Revised Statutes
TITLE 47 - Revenue and Taxation
RS 47:605.1 - Capital stock, surplus, and undivided profits
§605.1. Capital stock, surplus, and undivided profits
A. If a corporation's total debt to all related parties exceeds the capital stock and surplus and undivided profits of the corporation as determined under R.S. 47:604 and 605, then fifty percent of the amount of the excess shall be included in the capital stock and surplus and undivided profits of the corporation and excluded from debt.
B. For purposes of this Section, "debt" shall not:
(1) Include trade debt that is less than one hundred eighty days old,
(2) Include deposit liabilities to related parties, or
(3) Be reduced by receivables.
C. For purposes of this Section, "related party" means any member of a controlled group of corporations as defined in 26 U.S.C. 1563, or any other person that would be a member of a controlled group if rules similar to those of 26 U.S.C. 1563 were applied to that person.
Acts 2004, 1st Ex. Sess., No. 2, §1, eff. Jan. 1, 2006; Acts 2005, No. 355, §1, eff. Jan. 1, 2006, for taxable periods beginning after Dec. 31, 2005.
