INTERPRETIVE OR POLICY STATEMENT
The Department of Revenue has cancelled the following Excise Tax Advisories effective June 30, 2002.
ETA 165.04.109 Interest received on funds procured for affiliated companies and ETA 571.04.169 Taxability of investment income: ETA 165 explains the department's position on interest received for loans made to affiliated companies when the business making the loans has procured these funds from a third-party lending source. ETA 571 provides guidance on the B&O tax deduction provided by RCW 82.04.4281, which provides a deduction for amounts received from investments or the use of money as such for taxpayers not engaged in banking, loan, security, or other financial business.
These documents are being cancelled because the information is out-of-date. They fail to recognize that chapter 150, Laws of 2002 (HB 2641), made substantial changes to the B&O tax deduction provided for certain investment income by RCW 82.04.4281.
Questions regarding the cancellation of these documents may be directed to Alan R. Lynn, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6125, fax (360) 664-0693, Internet alanl@dor.wa.gov.
Alan R. Lynn
Rules Coordinator