KPMG report - Michigan Supreme Court’s decision allowing Multistate Tax Compact in computing Michigan Business Tax liability 

July 15:  The Michigan Supreme Court issued a long-awaited opinion yesterday, holding that a taxpayer could elect to use the Multistate Tax Compact allocation and apportionment provisions in computing its Michigan Business Tax (MBT) liability. International Business Machines Corp. v. Department of Treasury, No. 146440 (Mich. July 14, 2014).

In doing so, the high court overturned the state appeals court, which had held that the taxpayer could not elect the Compact because the state’s adoption of the mandatory MBT apportionment provisions implicitly repealed the Compact election.


In its July 14 opinion, the Michigan Supreme Court also held that the Modified Gross Receipts Tax component of the MBT was an income tax to which the Compact election applied.


Read an initial analysis [PDF 256 KB] of the decision prepared by KPMG LLP: Michigan Supreme Court holds that Multistate Tax Compact election is allowed in computing Michigan Business Tax liability




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