Sec. 18-3.1. General

Tax Law, § 1453(f)

(a) Provided an election has not been made pursuant to section 19-2.3 of this Title, a taxpayer which establishes an IBF, as defined in section 16-2.16 of this Title, is allowed as a deduction, in computing its entire net income, the adjusted eligible net income, as determined in this Subpart, of such IBF. However, in the event the adjusted eligible net income of the IBF is a loss, the amount of such loss must be added to Federal taxable income in computing the taxpayer's entire net income.

(b) The adjusted eligible net income of a IBF is computed by subtracting from eligible gross income the following:

(1) expenses or other deductions directly or indirectly attributable to eligible gross income;

(2) the ineligible funding amount; and

(3) the floor amount.

(c) An IBF is required to:

(1) make loans to and receive deposits from foreign persons as defined in section 18-3.2 of this Subpart; and

(2) maintain books and records that accurately reflect gross income, gains, losses, deductions, assets, liabilities and other activities of the IBF for the taxable year, and make available to the Tax Commission upon its request any information necessary to substantiate the deduction determined in this Subpart. Such information may include, but shall not be limited to:

(i) a list of all loans made, arranged for, placed or serviced during the taxable year, indicating the borrower, loan number, date proceeds disbursed, maturity date, amount borrowed and terms;

(ii) a list of all deposits made or placed during the taxable year, indicating where such deposits were made or placed, date of deposit, amount and terms; and

(iii) a list of all depositors for the taxable year.