Insurance Companies/Financial Institutions 1. Are mortgage companies financial institutions under the Corporate Income Tax?
Possibly. MCL 206.651(f) defines a financial institution as:
(i) A bank holding company, a national bank, a state chartered bank, a state chartered savings bank, a federally chartered savings association, or a federally chartered farm credit system institution.
(ii) Any entity, other than an entity subject to the tax imposed under chapter 12, who is directly or indirectly owned by an entity described in subparagraph (i) and is a member of the unitary business group.
(iii) A unitary business group of entities described in subparagraph (i) or (ii), or both.
Thus, even though a mortgage company is not expressly defined as a financial institution, it will be considered a financial institution if it is owned directly or indirectly by a financial institution and is a member of the unitary business group of which the parent financial institution is also a member.