Yes. Under the MBT, a unitary business group is a taxpayer that consists of:
a group of United States persons, other than a foreign operating entity, 1 of
which owns or controls, directly or indirectly, more than 50% of the ownership
interest with voting rights or ownership interests that confer comparable rights
to voting rights of the other United States persons, and that has business
activities or operations which result in a flow of value between or among
persons included in the unitary business group or has business activities or
operations that are integrated with, are dependent upon, or contribute to each
other. For purposes of this subsection, flow of value is determined by reviewing
the totality of facts and circumstances of business activities and operations. [MCL
208.1117(6).]
So long as the control and relationship tests are satisfied, a tax exempt
organization, including a nonstock nonprofit organization, can be part of a
unitary business group. In the case of the control test and nonstock nonprofit
organizations, one person controls more than 50% of the ownership interests with
voting or comparable rights of the nonstock nonprofit organization if more than
50% of the directors or trustees of that organization are either representatives
of or controlled by the parent organization.
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