Arizona § 43-1132 - Taxpayers liable; exceptions to allocation and apportionment; examination of evidence of income and expenses
Full text of Arizona Arizona Revised Statutes § 43-1132 — Taxpayers liable; exceptions to allocation and apportionment; examination of evidence of income and expenses, with citation guidance and answers to common questions.
§ 43-1132. Taxpayers liable; exceptions to allocation and apportionment; examination of evidence of income and expenses
A. Any taxpayer having income from business activity which is taxable both within and without this state shall allocate and apportion net income as provided in this article, but net income of a foreign corporation which is not itself subject to the tax imposed by this title shall not be allocated or apportioned to this state.
B. For the purposes of computing Arizona taxable income under this title, expenses which are attributable to income of a foreign corporation which is not itself subject to the tax imposed by this title shall not be allocated or apportioned to this state.
C. In the case of an audit performed on a taxpayer by the department, the department may examine any books, papers, records or memoranda of the taxpayer relating to income and expenses of the taxpayer both within and without the United States. The information provided by the taxpayer is subject to title 42, chapter 2, article 1.
D. Subsections A and B of this section do not apply to a taxpayer that has elected to file a consolidated return pursuant to section 43-947. An Arizona affiliated group, as defined in section 43-947, that has income from business activity that is taxable both in and outside this state shall allocate and apportion its net income as provided by this article.
E. The net income of a taxpayer that would otherwise meet the requirements of 15 United States Code sections 381 through 384 but that is subject to the tax imposed by this title solely because of the presence of consignment inventory in this state shall not be allocated or apportioned to this state if all of the following conditions are met:
1. The presence of the consignment inventory is a requirement of the taxpayer's contract with its customer.
2. The consignment inventory is located on the customer's property.
Source: official Arizona text · Last verified 2026-08-27
Frequently Asked Questions About Arizona § 43-1132
What does Arizona Revised Statutes § 43-1132 cover?
Section 43-1132 ("Taxpayers liable; exceptions to allocation and apportionment; examination of evidence of income and expenses") is part of the Arizona Revised Statutes, the codified statutory law of Arizona. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arizona § 43-1132?
A common citation format is "Arizona Revised Statutes § 43-1132" (Arizona). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arizona law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arizona official source linked on this page or consult a licensed Arizona attorney.
How does Arizona § 43-1132 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arizona can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arizona.