Skip to main content
Find a Lawyer

Massachusetts General Laws Part I. Administration of the Government (Ch. 1-182) Ch. 63, § 31K

Current as of January 01, 2025 | Updated by Findlaw Staff

The adjustments required in subsection (b) of section 31I as they relate to royalty expenses and costs and related interest expenses and costs, and in subsection (a) of section 31J as they relate to interest expenses and costs, shall not apply if the taxpayer establishes by clear and convincing evidence, as determined by the commissioner and consistent with section 3A of chapter 62C that:

(1) the royalty expenses and costs and related interest expenses and costs under section 31I, or interest expenses and costs under section 31J, were directly or indirectly paid or incurred to a related member, as defined in section 31I, that is not a controlled foreign corporation within the meaning of section 957 of the Internal Revenue Code, as amended and in effect for the taxable year; and

(2) all of the following requirements are complied with:

(i) the related member is a resident of a nation which has in force a comprehensive income tax treaty with the United States;

(ii) the amounts are deductible under federal income tax law;

(iii) the transaction giving rise to the royalty expenses and costs and related interest expenses and costs under section 31I, or interest expenses and costs under section 31J, have a valid business purpose other than the avoidance of tax that would otherwise be due; and

(iv) all terms and conditions of the transaction would have been agreed to in an arm's length negotiation between independent parties.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Massachusetts General Laws Part I. Administration of the Government (Ch. 1-182) Ch. 63, § 31K - last updated January 01, 2025 | https://codes.findlaw.com/ma/part-i-administration-of-the-government-ch-1-182/ma-gen-laws-ch-63-sect-31k/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard