Interdepartmental Transfers (Rescinded January 30, 2011)

AUTHORITY: section 144.270, RSMo 1994. This rule was previously filed as rule no. 20 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-63 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. Central Cooling & Supply Co. v. Director of Revenue, 648 SW2d 546 (Mo. banc 1982). Transfers of property between two corporations are subject to sales tax even though the transferor was a subsidiary of the transferee, created for the limited purpose of purchasing goods for the parent corporation. The court held that, “Central and Johnson were organized as separate corporate entities for a proper business purpose. There is no basis for ignoring this separate corporate existence to permit Central to avoid tax liability and gain an unfair advantage over other separately owned corporations.” Bath Antiques v. Director of Revenue, Case No. RS-80-0161 (A.H.C. 8/17/82). Sales between parent corporations and subsidiary corporations are not exempt “interdepartmental transfers” as defined in 12 CSR 10-3.140(1). They are taxable sales.