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Instructions For Preparation of

SCHEDULE

BUSINESS PRIVILEGE

Alabama Business Privilege Tax

TAX YEAR

2011

Financial Institution Group Computation Schedule

INSTRUCTIONS

General Information

single consolidated business privilege tax return. The consolidat-

ed filing election is made on Alabama Schedule G, Financial Insti-

The Alabama Schedule G, Financial Institution Group Compu-

tution Group Computation Schedule. A financial institution group

tation Schedule, is used to compute the Alabama business privi-

must file the consolidated return using the Alabama Form CPT,

lege tax liability for financial institution groups, as defined by Sec-

accompanied by a properly completed Alabama Schedule G.

tion 40-14A-22(f), Code of Alabama 1975.

Preparation Instructions

See the Alabama Department of Revenue’s web site

( ) for the Alabama Business Privilege

Consolidated Filing Election –

Tax law, regulations, forms, and form preparation instructions.

Area on Top of Schedule G

Available in the last section of this document are definitions of

Indicate, by checking the appropriate box, if the financial insti-

certain terms, the text of Section 40-14A-22(d), Code of Ala-

tution group is making the election to file a consolidated Alabama

bama 1975, Maximum Taxes, and the text of Section 40-14A-

business privilege tax return, in accordance with Section 40-14A-

22(f), Code of Alabama 1975, Minimum Taxes for Financial Insti-

22(f), Code of Alabama 1975.

tution Groups.

If a member of the financial institution group is filing separate-

Which Taxpayers Must File an Alabama Schedule G?

ly, the appropriate box should be checked, and the FEIN of the

Alabama Schedule G, Financial Institution Group Compu-

common parent of the affiliated group (as defined by Section 40-

tation Schedule, must be filed only by:

14A-22(f), Code of Alabama 1975) must be provided.

1. Financial institution groups (as defined in Section 40-

Tax Computation If

14A-22(f), Code of Alabama 1975), if a consolidated filing elec-

Electing to File a Consolidated Return

tion is made by the parent, in accordance with Section 40-14A-

22(f), Code of Alabama 1975, or

If the financial institution group chooses to make the Consoli-

2. Each member of the financial institution group must file

dated Filing Election, lines 1 through 5 should be completed.

an Alabama Form CPT, accompanied by a properly completed

Consolidated Election – Line 1. Total Deposits Inside Ala-

Alabama Schedule G, if the parent of the financial institution group

bama for the Entire Financial Institution Group. This amount

does not elect to file a consolidated business privilege tax return.

should be obtained from the, FDIC, OTS, or NCUSIF, whichever

No other taxpayer should file an Alabama Schedule G.

is the appropriate federal regulator, as of June 30th of the deter-

Maximum Business Privilege Tax for Financial Institution

mination period for the financial institution group.

Groups. Section 40-14A-22(d), Code of Alabama 1975, estab-

Consolidated Election – Line 2. Appropriate Rate from

lishes a maximum Alabama business privilege tax for a financial

Deposit Rate Schedule.

institution group of $3,000,000, per taxable year.

Based on the amount of deposits, as of June 30th of the Deter-

Minimum Business Privilege Tax for Financial Institution

mination Period, determine the rate from the following Deposit

Groups. Section 40-14A-22(f)(5), Code of Alabama 1975,

Rate Schedule.

establishes a minimum Alabama business privilege tax for a tax-

Deposit Rate Schedule:

able year, which is based on the amount of deposits the financial

Deposits in Alabama

Rate per $1,000 of Deposits

institution group has in Alabama, as reported by the Federal

Less than $1 billion

$ .125 per $1,000

Deposit Insurance Corporation (FDIC), the Office of Thrift Super-

$1 billion or more up to $6 billion

$ .17 per $1,000

vision (OTS), or the National Credit Union Share Insurance Fund

More than $6 billion

$ .225 per $1,000

(NCISIF). The minimum tax is computed by applying a tax rate

Consolidated Election – Line 3. Alternative Minimum Privi-

(stated in terms of dollars per $1,000 of FDIC, OTS, or NCUSIF

lege Tax. Multiply line 1 (Total Deposits Inside Alabama for the

deposits in Alabama) to the Alabama deposits, as follows:

Entire Financial Institution Group) by line 2 (Appropriate Rate

Deposits in Alabama

Rate per $1,000 of Deposits

from the Deposit Rate Schedule).

Less than $1 billion

$ .125 per $1,000

Consolidated Election – Line 4. Enter amount of Tax Lia-

$1 billion or more up to $6 billion

$ .17 per $1,000

bility from Consolidated Form CPT, page 2, Part B, line 20. If

More than $6 billion

$ .225 per $1,000

a consolidated filing election is made, Form CPT must be com-

Financial Institution Group Members. A financial institution

puted for the entire financial institution group, and the computa-

group can have as members, corporations and limited liability

tion must disclose the information on a separate-member basis in

entities. Individual financial institution group members can file

accordance with §40-14A-22(f). If the election is made, Form CPT

separate Alabama business privilege tax returns, but they must

must be accompanied by a worksheet that lists Form CPT infor-

file Form CPT only, regardless of the type of entity they may be.

mation (lines 1-20 of page 2) for each member included in the

The minimum and maximum business privilege tax amounts still

financial institution group. The sum of the Business Privilege Tax

apply to the financial institution group.

Due for the entire consolidated financial institution group as com-

Financial Institution Group Consolidated Filing Election.

puted on this worksheet should be entered on line 4 of Schedule

A financial institution group can make an annual election to file a

G and on Form CPT, page 2, Part B, line 20. When computing the

Schedule G Instruction - Alabama Business Privilege Tax Financial Institution Group Computation Schedule - 2011

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