ORS 314.295¹
Apportionment or allocation where two or more organizations, trades or businesses are owned or controlled by the same interests

In any case of two or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the Department of Revenue may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if it determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses. [1957 c.632 §10 (enacted in lieu of 316.560 and 317.375); 1991 c.457 §16b]

Notes of Decisions

Although limited partnership was not engaged in trade or business, transac­tions in which real prop­erty was transferred in order to generate losses and to funnel income into tax exempt profit sharing trust were not illegal or shams and defendants failed to show that they were not equivalent to arm's length transac­tions. Allison v. Dept. of Rev., 11 OTR 431 (1990)

Transac­tion lacking substantial legal and economic significance aside from tax considera­tions as to both buyer and seller is sham. Baisch v. Dept. of Rev., 316 Or 203, 850 P2d 1109 (1993)

Chapter 314

Law Review Cita­tions

9 WLJ 249 (1973); 5 EL 516 (1975)

1 Legislative Counsel Committee, CHAPTER 314—Taxes Imposed Upon or Measured by Net Income, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors314.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 314, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­314ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information