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the minimum tax liability of the UBC affiliated group is determined
by the Code or other law otherwise applicable. Thus, respondent
contends that section 56(a)(2) and (c), the legislative history
thereof, and certain case law remain applicable, requiring the
regular tax deduction of the UBC affiliated group under section
56(c) to equal the amount of tax actually imposed on the group under
chapter one of subtitle A of the Code for the taxable year (without
regard to the corporate minimum tax and certain other provisions).
Respondent argues that, under petitioner's method, the aggregate of
the members' separate regular tax deductions will not equal UBC's
consolidated regular tax. Moreover, respondent argues, petitioner's
method reduces the UBC affiliated group's corporate minimum tax only
if the total of the members' separate regular tax deductions exceeds
UBC's consolidated regular tax. Respondent states: “Consequently,
if the Court limits the total `regular tax deduction' to the UBC
group's consolidated regular tax liability, petitioner's overpayment
claims become moot and resolution of the Separate Return Issue
unnecessary.” In other words, we need not determine the proper
method of calculating the corporate minimum tax in the context of
corporations filing consolidated returns if we decide that the
deduction under section 56(c) for an affiliated group of
corporations filing a consolidated return is limited to the tax
actually imposed on such group under chapter one of subtitle A of
the Code for the taxable year (without regard to the corporate
minimum tax and certain other provisions and reduced by the sum of
certain credits) (the actually imposed chapter one tax).
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