§ 5. Reports. 1. Every corporation having an officer, agent or
representative within the city, shall annually on or before March
fifteenth transmit to the director of finance a report in a form
prescribed by him (except that a corporation which reports on the basis
of a fiscal year shall transmit its report within two and one-half
months after the close of its fiscal year), setting forth such
information as the director of finance may prescribe and every taxpayer
which ceases to do business in the city or to be subject to the tax
imposed by this part shall transmit to the director of finance a report
on the date of such cessation or at such other time as he may require
covering each year or period for which no report was theretofore filed.
Every taxpayer shall also transmit such other reports and such facts and
information as the director of finance may require in the administration
of this part. The director of finance may grant a reasonable extension
of time for filing reports whenever good cause exists.

With respect to taxable years ending prior to December thirty-first,
nineteen hundred sixty-six, the returns required to be made and filed
pursuant to this section shall be made and filed on or before the
fifteenth day of the third month following the close of such taxable
year or the sixtieth day following the date this title becomes
effective, whichever is later.

An automatic extension of three months for the filing of its annual
report shall be allowed any taxpayer if, within the time prescribed by
either of the preceding paragraphs, whichever is applicable, such
taxpayer files with the director of finance an application for extension
in such form as he may prescribe by regulation and pays on or before the
date of such filing the amount properly estimated as its tax.

2. Every report shall have annexed thereto a certification by the
president, vice-president, treasurer, assistant treasurer, chief
accounting officer or any other officer of the taxpayer duly authorized
so to act to the effect that the statements contained therein are true.
The fact that an individual's name is signed on a certification of the
report shall be prima facie evidence that such individual is authorized
to sign and certify the report on behalf of the corporation. Blank forms
of reports shall be furnished by the director of finance, on
application, but failure to secure such a blank shall not release any
corporation from the obligation of making any report required by this
part.

3. If the amount of taxable income for any year of any taxpayer, or of
any shareholder of any taxpayer, which has elected to be taxed under
subchapter s of chapter one of the internal revenue code, as returned to
the United States treasury department is changed or corrected by the
commissioner of internal revenue or other officer of the United States
or other competent authority, or where a renegotiation of a contract or
subcontract with the United States results in a change in taxable
income, or where a recovery of a war loss results in a computation or
recomputation of any tax imposed by the United States, or if a taxpayer
or such shareholder of a taxpayer, pursuant to subsection (d) of section
sixty-two hundred thirteen of the internal revenue code, executes a
notice of waiver of the restrictions provided in subsection (a) of said
section, such taxpayer shall report such changed or corrected taxable
income, or the results of such renegotiation, or such computation or
recomputation, or such execution of such notice of waiver and the
changes or corrections of his federal taxable income on which it is
based, within ninety days after such execution or the final
determination of such change or correction or renegotiation, or such
computation, or recomputation or on its next report under this part, or
as required by the director of finance, and shall concede the accuracy
of such determination or state wherein it is erroneous. Any taxpayer
filing an amended return with such department shall also file within
ninety days thereafter an amended report with the director of finance.

4. In the discretion of the director of finance, any taxpayer which
owns or controls either directly or indirectly substantially all the
capital stock of one or more other corporations, or substantially all
the capital stock of which is owned or controlled either directly or
indirectly by one or more other corporations or by interests which own
or control either directly or indirectly substantially all the capital
stock of one or more other corporations, may be required or permitted to
make a report on a combined basis covering any such other corporations
and setting forth such information as the director of finance may
require; provided, however, that no combined report covering any
corporation not a taxpayer shall be required unless the director of
finance deems such a report necessary, because of inter-company
transactions or some agreement, understanding, arrangement or
transaction referred to in subdivision five of this section, in order
properly to reflect the tax liability under this part. In the case of a
combined report the tax shall be measured by the combined entire net
income or combined capital, of all the corporations included in the
report. In computing combined entire net income intercorporate dividends
shall be eliminated, in computing combined business and investment
capital intercorporate stock holdings and intercorporate bills, notes
and accounts receivable and payable and other intercorporate
indebtedness shall be eliminated and in computing combined subsidiary
capital intercorporate stockholdings shall be eliminated.

5. In case it shall appear to the director of finance that any
agreement, understanding or arrangement exists between the taxpayer and
any other corporation or any person or firm, whereby the activity,
business, income or capital of the taxpayer within the city is
improperly or inaccurately reflected, the director of finance is
authorized and empowered, in its discretion and in such manner as it may
determine, to adjust items of income, deductions and capital, and to
eliminate assets in computing any allocation percentage provided only
that any income directly traceable thereto be also excluded from entire
net income, so as equitably to determine the tax. Where (a) any taxpayer
conducts its activity or business under any agreement, arrangement or
understanding in such manner as either directly or indirectly to benefit
its members or stockholders, or any of them, or any person or persons
directly or indirectly interested in such activity or business, by
entering into any transaction at more or less than a fair price which,
but for such agreement, arrangement or understanding, might have been
paid or received therefor, or (b) any taxpayer, a substantial portion of
whose capital stock is owned either directly or indirectly by another
corporation, enters into any transaction with such other corporation on
such terms as to create an improper loss or net income, the director of
finance may include in the entire net income of the taxpayer the fair
profits, which, but for such agreement, arrangement or understanding,
the taxpayer might have derived from such transaction.

6. An action may be brought at any time by the corporation counsel at
the instance of the director of finance as agent and trustee for the
city to compel the filing of reports due under this part.

7. Reports shall be preserved for five years, and thereafter until the
director of finance orders them to be destroyed.

8. Where the state tax commission changes or corrects a taxpayer's
sales and compensating use tax liability with respect to the purchase or
use of items for which a sales or compensating use tax credit against
the tax imposed by this part was claimed, the taxpayer shall report such
change or correction to the commissioner of finance within ninety days
of the final determination of such change or correction, or as required
by the commissioner of finance, and shall concede the accuracy of such
determination or state wherein it is erroneous. Any taxpayer filing an
amended return or report relating to the purchase or use of such items
shall also file within ninety days thereafter a copy of such amended
return or report with the commissioner of finance.