A. This chapter provides specific guidance to all corporate entities subject to the Maryland income tax laws.
B. COMAR 03.04.08 applies to banking and similar institutions as defined in that chapter. Corporations not coming within that definition, including subsidiaries or affiliates of banking and similar institutions, shall apportion their income between Maryland and other states as required by applicable regulations and administrative releases of the Comptroller.
C. Banking and nonbanking institutions are required to file a Maryland corporate income tax return if they are engaged in or conducting business in this State. No change is intended by these regulations in existing income tax law or practice with respect to the level of activity sufficient to require the filing of an income tax return, or the apportionment of income to this State.
D. Banking and nonbanking institutions may be required to use a modified apportionment formula under the authority of COMAR 03.04.08.03C if a banking institution, and of Regulation .08E of this chapter if a nonbanking institution.
E. Application of Tax-General Article, §8-202(a)(2), Annotated Code of Maryland.
(1) Tax-General Article, §8-202(a)(2), Annotated Code of Maryland, terminates the financial institution franchise tax for all taxable years beginning after December 31, 2000, and makes these institutions subject to taxation under Tax-General Article, Title 10, Annotated Code of Maryland.
(2) The following are not factors in determining whether an entity is required to file an income tax return with the Comptroller or to apportion income to the State:
(a) A decision by the former administrator (the State Department of Assessments and Taxation) of the financial institution franchise tax that an entity was not required to file a franchise tax return; or
(b) The failure of an entity to file a franchise tax return, regardless of whether the failure was based on a ruling, guidance, or decision of the former administrator.