{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-446.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-446.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-446.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-446.html"}],"law_id":73547,"edition_id":1,"section_id":73547,"structure_id":13546,"section_number":"58.1-446","catch_line":"Price manipulation; intercorporate transactions; parent corporations and subsidiaries","history":"Code 1950, \u00a7 58-151.083; 1971, Ex. Sess., c. 171; 1984, c. 675.","full_text":"When any corporation liable to taxation under this chapter by agreement or otherwise conducts the business of such corporation in such manner as either directly or indirectly to benefit the members or stockholders of the corporation, or any of them, or any person or persons directly or indirectly interested in such business, by either buying or selling its products or the goods or commodities in which it deals at more or less than a fair price which might be obtained therefor, or when such a corporation sells its products, goods or commodities to another corporation or acquires and disposes of the products, goods or commodities of another corporation in such manner as to create a loss or improper taxable income, and such other corporation by stock ownership, agreement or otherwise controls or is controlled by the corporation liable to taxation under this chapter, the Department may require such facts as it deems necessary for the proper computation provided by this chapter and may for the purpose determine the amount which shall be deemed to be the Virginia taxable income of the business of such corporation for the taxable year. In determining such income, the Department shall have regard to the fair profits which, but for any agreement, arrangement or understanding, might be, or could have been, obtained from dealing in such products, goods or commodities.\n\t\tAny corporation liable to taxation under this chapter and either owned or controlled by or owning or controlling, either directly or indirectly, another corporation may be required by the Department to make a report consolidated with such other corporation showing the combined gross and net income and such other information as the Department may require, but excluding intercorporate stockholdings and the intercorporate accounts. In case it appears to the Department that any arrangements exist in such a manner as improperly to reflect the business done or the Virginia taxable income earned from business done in this Commonwealth, the Department may, in such manner as it may determine, equitably adjust the tax. In all cases mentioned in this paragraph, such other corporations not otherwise liable to taxation under this chapter shall, for the purposes of this chapter, be deemed to be doing business in Virginia through the agency of the corporation liable to taxation under this chapter.","order_by":null,"text":{"0":{"id":264614,"text":"When any corporation liable to taxation under this chapter by agreement or otherwise conducts the business of such corporation in such manner as either directly or indirectly to benefit the members or stockholders of the corporation, or any of them, or any person or persons directly or indirectly interested in such business, by either buying or selling its products or the goods or commodities in which it deals at more or less than a fair price which might be obtained therefor, or when such a corporation sells its products, goods or commodities to another corporation or acquires and disposes of the products, goods or commodities of another corporation in such manner as to create a loss or improper taxable income, and such other corporation by stock ownership, agreement or otherwise controls or is controlled by the corporation liable to taxation under this chapter, the Department may require such facts as it deems necessary for the proper computation provided by this chapter and may for the purpose determine the amount which shall be deemed to be the Virginia taxable income of the business of such corporation for the taxable year. In determining such income, the Department shall have regard to the fair profits which, but for any agreement, arrangement or understanding, might be, or could have been, obtained from dealing in such products, goods or commodities.\n\t\tAny corporation liable to taxation under this chapter and either owned or controlled by or owning or controlling, either directly or indirectly, another corporation may be required by the Department to make a report consolidated with such other corporation showing the combined gross and net income and such other information as the Department may require, but excluding intercorporate stockholdings and the intercorporate accounts. In case it appears to the Department that any arrangements exist in such a manner as improperly to reflect the business done or the Virginia taxable income earned from business done in this Commonwealth, the Department may, in such manner as it may determine, equitably adjust the tax. In all cases mentioned in this paragraph, such other corporations not otherwise liable to taxation under this chapter shall, for the purposes of this chapter, be deemed to be doing business in Virginia through the agency of the corporation liable to taxation under this chapter.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":13546,"edition_id":1,"name":"Accounting, Returns, Procedures for Corporations","identifier":"14","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:45:11","date_modified":"2026-06-26 03:45:11","permalink":{"id":253719,"object_type":"structure","relational_id":13546,"identifier":"14","token":"58.1\/I\/3\/14","url":"\/58.1\/I\/3\/14\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60123,"structure_id":13546,"section_number":"58.1-440","catch_line":"Accounting","url":"\/58.1-440\/","token":"58.1\/I\/3\/14\/58.1-440","metadata":false},{"id":54651,"structure_id":13546,"section_number":"58.1-440.1","catch_line":"Accounting-deferred taxes","url":"\/58.1-440.1\/","token":"58.1\/I\/3\/14\/58.1-440.1","metadata":false},{"id":72207,"structure_id":13546,"section_number":"58.1-441","catch_line":"Reports by corporations","url":"\/58.1-441\/","token":"58.1\/I\/3\/14\/58.1-441","metadata":false},{"id":69106,"structure_id":13546,"section_number":"58.1-442","catch_line":"Separate, combined, or consolidated returns of affiliated corporations","url":"\/58.1-442\/","token":"58.1\/I\/3\/14\/58.1-442","metadata":false},{"id":85145,"structure_id":13546,"section_number":"58.1-443","catch_line":"Prohibition of worldwide consolidation or combination","url":"\/58.1-443\/","token":"58.1\/I\/3\/14\/58.1-443","metadata":false},{"id":54510,"structure_id":13546,"section_number":"58.1-444","catch_line":"Several liability of affiliated corporations","url":"\/58.1-444\/","token":"58.1\/I\/3\/14\/58.1-444","metadata":false},{"id":63978,"structure_id":13546,"section_number":"58.1-445","catch_line":"Consolidation of accounts","url":"\/58.1-445\/","token":"58.1\/I\/3\/14\/58.1-445","metadata":false},{"id":65477,"structure_id":13546,"section_number":"58.1-445.1","catch_line":"Repealed","url":"\/58.1-445.1\/","token":"58.1\/I\/3\/14\/58.1-445.1","metadata":false},{"id":73547,"structure_id":13546,"section_number":"58.1-446","catch_line":"Price manipulation; intercorporate transactions; parent corporations and subsidiaries","url":"\/58.1-446\/","token":"58.1\/I\/3\/14\/58.1-446","metadata":false},{"id":59908,"structure_id":13546,"section_number":"58.1-447","catch_line":"Execution of returns of corporations","url":"\/58.1-447\/","token":"58.1\/I\/3\/14\/58.1-447","metadata":false},{"id":70673,"structure_id":13546,"section_number":"58.1-448","catch_line":"Forms to be furnished","url":"\/58.1-448\/","token":"58.1\/I\/3\/14\/58.1-448","metadata":false},{"id":55649,"structure_id":13546,"section_number":"58.1-449","catch_line":"Supplemental reports","url":"\/58.1-449\/","token":"58.1\/I\/3\/14\/58.1-449","metadata":false},{"id":54972,"structure_id":13546,"section_number":"58.1-450","catch_line":"Failure of corporation to make report or return","url":"\/58.1-450\/","token":"58.1\/I\/3\/14\/58.1-450","metadata":false},{"id":56719,"structure_id":13546,"section_number":"58.1-451","catch_line":"Fraudulent returns, etc., of corporations; penalty","url":"\/58.1-451\/","token":"58.1\/I\/3\/14\/58.1-451","metadata":false},{"id":81878,"structure_id":13546,"section_number":"58.1-452","catch_line":"Fraudulent returns; criminal liability; penalty","url":"\/58.1-452\/","token":"58.1\/I\/3\/14\/58.1-452","metadata":false},{"id":57652,"structure_id":13546,"section_number":"58.1-453","catch_line":"Extension of time for filing returns by corporations","url":"\/58.1-453\/","token":"58.1\/I\/3\/14\/58.1-453","metadata":false},{"id":59422,"structure_id":13546,"section_number":"58.1-454","catch_line":"Department may estimate corporation's tax when no return filed","url":"\/58.1-454\/","token":"58.1\/I\/3\/14\/58.1-454","metadata":false},{"id":83702,"structure_id":13546,"section_number":"58.1-455","catch_line":"Time of payment of corporation income taxes; penalty and interest for nonpayment","url":"\/58.1-455\/","token":"58.1\/I\/3\/14\/58.1-455","metadata":false}],"previous_section":{"id":65477,"structure_id":13546,"section_number":"58.1-445.1","catch_line":"Repealed","url":"\/58.1-445.1\/","token":"58.1\/I\/3\/14\/58.1-445.1","metadata":false},"next_section":{"id":59908,"structure_id":13546,"section_number":"58.1-447","catch_line":"Execution of returns of corporations","url":"\/58.1-447\/","token":"58.1\/I\/3\/14\/58.1-447","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-446\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1984, chapter 675.<\/p>","references":[{"id":56970,"section_number":"58.1-402","catch_line":"Virginia taxable income","order_by":null,"url":"\/58.1-402\/"}],"refers_to":false,"permalink":{"id":253753,"object_type":"law","relational_id":73547,"identifier":"58.1-446","token":"58.1\/I\/3\/14\/58.1-446","url":"\/58.1-446\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-446\/","token":"58.1\/I\/3\/14\/58.1-446","dublin_core":{"Title":"Price manipulation; intercorporate transactions; parent corporations and subsidiaries","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-446","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

When any corporation<\/span> liable to taxation under this chapter by agreement or otherwise conducts the business of such corporation<\/span> in such manner as either directly or indirectly to benefit the members or stockholders of the corporation<\/span>, or any of them, or any person or persons directly or indirectly interested in such business, by either buying or selling its products or the goods or commodities in which it deals at more or less than a fair price which might be obtained therefor, or when such a corporation<\/span> sells its products, goods or commodities to another corporation<\/span> or acquires and disposes of the products, goods or commodities of another corporation<\/span> in such manner as to create a loss or improper taxable income, and such other corporation<\/span> by stock ownership, agreement or otherwise controls or is controlled by the corporation<\/span> liable to taxation under this chapter, the Department<\/span> may require such facts<\/span> as it deems necessary for the proper computation provided by this chapter and may for the purpose determine the amount which shall be deemed to be the Virginia taxable income of the business of such corporation<\/span> for the taxable year. In determining such income, the Department<\/span> shall have regard to the fair profits which, but for any agreement, arrangement or understanding, might be, or could have been, obtained from dealing in such products, goods or commodities.\n\t\tAny corporation<\/span> liable to taxation under this chapter and either owned or controlled by or owning or controlling, either directly or indirectly, another corporation<\/span> may be required by the Department<\/span> to make a report consolidated with such other corporation<\/span> showing the combined gross and net income and such other information as the Department<\/span> may require, but excluding intercorporate stockholdings and the intercorporate accounts. In case it appears to the Department<\/span> that any arrangements exist in such a manner as improperly to reflect the business done or the Virginia taxable income earned from business done in this Commonwealth, the Department<\/span> may, in such manner as it may determine, equitably adjust the tax. In all cases mentioned in this paragraph, such other corporations<\/span> not otherwise liable to taxation under this chapter shall, for the purposes of this chapter, be deemed to be doing business in Virginia through the agency of the corporation<\/span> liable to taxation under this chapter.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPRICE MANIPULATION; INTERCORPORATE TRANSACTIONS; PARENT CORPORATIONS AND\nSUBSIDIARIES (\u00a7 58.1-446)\n\nWhen any corporation liable to taxation under this chapter by agreement or\notherwise conducts the business of such corporation in such manner as either\ndirectly or indirectly to benefit the members or stockholders of the\ncorporation, or any of them, or any person or persons directly or indirectly\ninterested in such business, by either buying or selling its products or the\ngoods or commodities in which it deals at more or less than a fair price which\nmight be obtained therefor, or when such a corporation sells its products, goods\nor commodities to another corporation or acquires and disposes of the products,\ngoods or commodities of another corporation in such manner as to create a loss\nor improper taxable income, and such other corporation by stock ownership,\nagreement or otherwise controls or is controlled by the corporation liable to\ntaxation under this chapter, the Department may require such facts as it deems\nnecessary for the proper computation provided by this chapter and may for the\npurpose determine the amount which shall be deemed to be the Virginia taxable\nincome of the business of such corporation for the taxable year. In determining\nsuch income, the Department shall have regard to the fair profits which, but for\nany agreement, arrangement or understanding, might be, or could have been,\nobtained from dealing in such products, goods or commodities.\n\t\tAny corporation liable to taxation under this chapter and either owned or\ncontrolled by or owning or controlling, either directly or indirectly, another\ncorporation may be required by the Department to make a report consolidated with\nsuch other corporation showing the combined gross and net income and such other\ninformation as the Department may require, but excluding intercorporate\nstockholdings and the intercorporate accounts. In case it appears to the\nDepartment that any arrangements exist in such a manner as improperly to reflect\nthe business done or the Virginia taxable income earned from business done in\nthis Commonwealth, the Department may, in such manner as it may determine,\nequitably adjust the tax. In all cases mentioned in this paragraph, such other\ncorporations not otherwise liable to taxation under this chapter shall, for the\npurposes of this chapter, be deemed to be doing business in Virginia through the\nagency of the corporation liable to taxation under this chapter.\n\nHISTORY: Code 1950, \u00a7 58-151.083; 1971, Ex. Sess., c. 171; 1984, c. 675.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}