HRS §235-38
Fixing an unfair income split
This section lets a taxpayer or the tax director change how business income is split between Hawaii and other states when the usual formula is unfair. It allows separate accounting, removing or adding factors, or using another fair method. No penalties are listed.
everyone
The statute, as written — Equitable adjustment of formula
If the allocation and apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this State, the taxpayer may petition for or the director of taxation may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (1) Separate accounting; (2) The exclusion of any one or more of the factors; (3) The inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this State; or (4) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.
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