Taxes - F3. How does a unitary business group ("UBG") composed of financial institutions that includes a bank authorized to exercise only trust powers,which is exempt from the MBT surcharge under MCL 208.1281(4)(b),calculate the surcharge?

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F3. How does a unitary business group ("UBG") composed of financial institutions that includes a bank authorized to exercise only trust powers,which is exempt from the MBT surcharge under MCL 208.1281(4)(b),calculate the surcharge?

Financial institution entities authorized to exercise only trust powers do not lose their identity when they are a part of a unitary business group. When a financial institution authorized to exercise only trust powers is unitary with other financial institutions it maintains its identity as an entity exempt from the surcharge,even though it will file a combined return with other financial institutions. Financial institutions authorized to exercise only trust powers will file a combined return with the UBG but will be removed from the surcharge calculation and not from overall liability. This computation will be performed in calculating Form 4590,2008 Michigan Business Tax Annual Return for Financial Institutions.