SB 2502 Summary

• Requires corporations to add back to Florida taxable income intangible expenses, interest expenses, and management fees paid to related entities, with exceptions for consolidated returns and specific qualifying transactions.

• Allows exceptions when the related entity is subject to at least a 5.5% aggregate effective tax rate, the transaction lacks a principal purpose of Florida tax avoidance, and the recipient regularly engages in similar transactions with third parties.

• Requires related entities receiving deductible payments to make corresponding subtractions from their taxable income if subject to Florida taxation.

• Mandates that taxpayers disclose information about related entity transactions including the recipient's name, domicile, amount paid, and payment description on their tax returns.

• Treats failure to add back required amounts or provide complete transaction information as negligence subject to penalties; applies to tax years ending on or after December 31, 2010.