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Instructions for Form 4752

Michigan Business Tax (MBT) Unitary Business Group

Combined Filing Schedule for Financial Institutions

functional integration include common programs or systems

Purpose

and shared information or property. Examples of centralized

management include common management or directors, shared

The purpose of this form is to:

staff functions, and business decisions made for the UBG rather

• Identify all members of a Unitary Business Group (UBG)

than separately by each member. Examples of economies of scale

• Gather tax return data for each member included in the

include centralized business functions and pooled benefits or

financial institution’s combined return on a separate basis,

insurance. Groups that commonly exhibit a flow of value include

make appropriate eliminations, and determine combined UBG

vertically or horizontally integrated businesses, conglomerates,

data for the tax return.

parent companies with their wholly owned subsidiaries, and

entities in the same general line of business. Flow of value must be

NOTE: This is not the primary return. It is designed to support

more than the mere flow of funds arising out of passive investment.

the MBT Annual Return for Financial Institutions (Form 4590)

submitted on behalf of the UBG by the Designated Member

Businesses are integrated with, are dependent upon, or

(DM). Even if there is only one financial institution member

contribute to each other under many of the same circumstances

represented on the return for the tax year, that member must

that establish flow of value. However, this alternate relationship

file this form in support of its Form 4590.

test is also commonly satisfied when one entity finances

the operations of another or when there exist intercompany

NOTE: Beginning January 1, 2012, only those taxpayers with

transactions, including financing.

a certificated credit, which is awarded but not yet fully claimed

or utilized, may elect to be MBT taxpayers. If a taxpayer files

For more information on the control and relationship tests

an MBT return and claims a certificated credit, the taxpayer

for UBGs, see Revenue Administrative Bulletin (RAB)

makes the election to file and pay under the MBT until the

2010-1, MBT—Unitary Business Group Control Test, and

certificated credit and any carryforward of that credit are

RAB 2010-2, MBT—Unitary Business Group Relationship

exhausted. If a member of a UBG holds a certificated credit

Tests, on the Department of Treasury (Treasury) Web site at

and wishes to remain taxable under the MBT, the group and

(Click on the “Reference Library”

not the member must make the election. The election should be

link on the left side of the page.)

made by the DM; however, the Department will treat a filing by

one member of the group claiming a certificated credit as if the

Filing Procedures for UBGs

election was made by the entire group.

By definition, a UBG can include standard taxpayers,

Fiscal Year Filers: See “Supplemental Instructions for Fiscal

insurance companies, and financial institutions. Note that an

MBT Filers — Financial Institutions” in the MBT Forms and

entity that would otherwise be standard but is owned by and

Instructions for Financial Institutions (Form 4599).

unitary with a financial institution is defined by statute to be a

financial institution. In some cases, however, not all members

General Information About UBGs in MBT

of the UBG will be included on the same return. Financial

Unitary Business Group means a group of United States

institution members file a combined return on Form 4590,

persons, other than a foreign operating entity, that satisfies the

with Form 4752 filed in support.

control test and relationship test.

Form 4752 is used to gather and combine data from each

United States person is defined in Internal Revenue Code (IRC)

financial institution member of the UBG to support the group’s

§ 7701(a)(30). A foreign operating entity is defined by statute in

Form 4590 and related forms. This form must be completed

Michigan Compiled Laws (MCL) 208.1109(5).

before the group’s Form 4590 and related forms are completed.

Control Test. The control test is satisfied when one person

If this UBG also includes standard and/or insurance company

members, those members will not report tax data on this form,

owns or controls, directly or indirectly, more than 50 percent

but will be listed as excluded affiliates in Part 3.

of the ownership interest with voting or comparable rights of

the other person or persons. A person owns or controls more

Standard members will combine and report their data using MBT

than 50 percent of the ownership interest with voting rights

Unitary Business Group Combined Filing Schedule for Standard

or ownership interest that confer comparable rights to voting

Members (Form 4580) and MBT Annual Return (Form 4567).

rights of another person if that person owns or controls:

Financial institutions include any of the following:

• More than 50 percent of the total combined voting power of

○ A bank holding company, a national bank, a state

all ownership interests with voting (or comparable) rights, or

chartered bank, an office of thrift supervision chartered

• More than 50 percent of the total value of all ownership

bank or thrift institution, or a savings and loan holding

interests with voting (or comparable) rights.

company other than a diversified savings and loan holding

company as defined in 12 United States Code (USC)

Relationship Tests. Flow of value is established when members

1467a(a)(1)(F), or a federally chartered Farm Credit System

of the group demonstrate one or more of functional integration,

centralized management, and economies of scale. Examples of

institution.

Form 4752 - Business Tax Unitary Business Group Combined Filing Schedule For Financial Institutions - 2012 Page 5

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