Section 1. Section 401(3)1(a), (b), (t) and (5) of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971, are amended, (3)2(a)(9)(A) is amended by adding a unit,
(3)1 and (3)4 are amended by adding phrases and the section is
amended by adding clauses to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." 1. (a) In case the entire business
of the corporation is transacted within this Commonwealth, for
any taxable year which begins on or after January 1, 1971,
taxable income for the calendar year or fiscal year as returned
to and ascertained by the Federal Government before special
deductions provided for in sections 241, 242, 243, 244, 245,
246, 247, 248, 249 and 250 of the Internal Revenue Code of 1986
(26 U.S.C. §§ 241, 242, 243, 244, 245, 246, 247, 248, 249 and
250), or in the case of a corporation participating in the
filing of consolidated returns to the Federal Government or that
is not required to file a return with the Federal Government,
the taxable income which would have been returned to and
ascertained by the Federal Government before special deductions
provided for in sections 241, 242, 243, 244, 245, 246, 247, 248,
249 and 250 of the Internal Revenue Code of 1986 (26 U.S.C. §§
241, 242, 243, 244, 245, 246, 247, 248, 249 and 250) if separate
returns had been made to the Federal Government for the current
and prior taxable years, subject, however, to any correction
thereof, for fraud, evasion, or error as finally ascertained by
the Federal Government.
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