Connecticut Administrative Code › Title 12 - Taxation › 407(2)(i)(J) - Business Analysis and Management Services › Section 12-407(2)(i)(J)-1 - Business analysis, business management, business management consulting and business public relations services

Current through July 10, 2024
(a)
In
			 general
. Section
			 12-407(2) (i)
			 (J) of the general statutes defines "sale"
			 and "selling" as including the rendering of business analysis, business
			 management, business management consulting and business public relations
			 services. Said section
			 12-407(2) (i)
			 (J) only applies where the business analysis,
			 business management, business management consulting and business public
			 relations services are rendered to a service recipient described in subsection
			 (b) of this regulation. Said section
			 12-407(2) (i)
			 (J) does not apply where the person rendering
			 business analysis, business management, business management consulting and
			 business public relations services is a person described in subsection (c) of
			 this regulation. Subsection (d) of this regulation defines the term "business
			 analysis services." Subsection (e) of this regulation defines the term
			 "business management services." Subsection (f) of this regulation defines the
			 term "business management consulting services." Subsection (g) of this
			 regulation defines the term "business public relations services." Services will
			 not be considered to be business analysis, business management or business
			 management consulting services unless they relate to a service recipient's core
			 business activities, as defined in subsection (h) of this regulation, or human
			 resource management activities, as defined in subsection (i) of this
			 regulation. While this regulation pertains, for purposes of supplementary
			 interpretation, as the phrase is used in section
			 12-2
			 of the general statutes, to said section
			 12-407(2) (i)
			 (J), the promulgation of this regulation is
			 authorized by section
			 12-426(1)
			 of the general statutes.
(b)
Affected service recipients
. Section
			 12-407(2) (i)
			 (J) of the general statutes only applies to
			 the rendering of business analysis, business management, business management
			 consulting and business public relations services to a person, as defined in
			 section
			 12-407(1)
			 of the general statutes, that is engaged in business, as defined in section
			 12-407(10)
			 of the general statutes.
(c)
Excluded service providers
.
(1)
			 In general. It is the nature of the services being rendered, and not what those
			 services are called or termed by the service provider or service recipient,
			 that determines whether services described in section
			 12-407(2) (i)
			 (J) of the general statutes are being
			 rendered. By way of example and not limitation, if a service recipient engages
			 a service provider who is a former employee of the service recipient to render
			 services that the parties refer to as business management consulting services,
			 the fact that the parties so refer to the services rendered does not mean that
			 business management consulting services described in said section
			 12-407(2) (i)
			 (J) are being rendered, just as the fact that
			 the parties may not so refer to the services rendered does not mean that
			 business management consulting services are not being rendered. In either
			 instance, the services being rendered must be examined to determine whether
			 those services are business management consulting services, as defined in
			 subsection (f) of this regulation.
(2) Directors. Section
			 12-407(2) (i)
			 (J) of the general statutes does not apply
			 where the business analysis, business management, business management
			 consulting and business public relations services are rendered by a service
			 provider in such provider's capacity as a member of the board of directors of
			 the service recipient.
(3)
			 Professional service providers. Subject to the provisions of this subdivision,
			 section
			 12-407(2) (i)
			 (J) of the general statutes does not apply
			 where the services rendered are professional services that are rendered by a
			 member of a profession, acting in such member's professional capacity, and that
			 are commonly associated with such profession. The term "profession" means any
			 generally acknowledged professional occupation requiring a degree, license or
			 specialized training, including, but not limited to, the medical, legal,
			 accounting and actuarial professions. Any provision of this subdivision to the
			 contrary notwithstanding, the term "professional services" does not include
			 services commonly known as management advisory services, when rendered by
			 accountants, or human resource management services, when rendered by
			 actuaries.