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III. Corporate Minimum Tax Issue
A. Introduction
On its consolidated returns since at least 1976, and
continuing through 1986, the UBC affiliated group computed its
tax under section 56(a), if any, based on a “consolidated”
computation of that tax (UBC's method), see infra sec. III.C.1.
In the notice of deficiency for docket No. 3723-95, respondent
accepted and used UBC's method in computing the tax under section
56(a) (the corporate minimum tax) for the UBC affiliated group's
1977, 1980, 1984, and 1985 taxable years. In the petition filed
in docket No. 3723-95, petitioner claims that it is entitled to
calculate the corporate minimum tax for the UBC affiliated
group's 1977, 1980, 1984, and 1985 taxable years on a separate
return basis (petitioner's method), see infra sec. III.C.2.,15
and claims refunds for those years on that basis.
B. The Corporate Minimum Tax Provisions
The corporate minimum tax provisions, as in effect for the
years in issue, are sections 56, 57, and 58, and the regulations
thereunder. Section 56 provides, in part, as follows:
SEC. 56 ADJUSTMENTS IN COMPUTING ALTERNATIVE MINIMUM
TAXABLE INCOME.
(a) General Rule.--In addition to the other taxes
imposed by * * * [chapter one of subtitle A of the
Code], there is hereby imposed for each taxable year,
with respect to the income of every corporation, a tax
15 It should be noted that, during those years in issue, no
member of the UBC affiliated group actually filed separate tax
returns.
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