Application of the unitary principle generally works to the taxpayer's benefit when:

Question

Quizplus · Accepted Answer

When other affiliates generate net operating losses, they can offset the income of the taxpayer, reducing the overall tax liability. Similarly, when the other affiliates operate in low-tax states, the income earned by them is subject to lower tax rates, which reduces the overall tax liability of the group. Therefore, both a. and b. choices are correct, and the unitary principle generally works to the taxpayer's benefit in these cases.

Application of the Unitary Principle Generally Works to the Taxpayer's