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Again citing mead, the court noted that “the pivotal question in cases such as this one is whether the business income sought to be included in the apportionable tax base derives from an unrelated business activity constituting a discrete business enterprise that is not part of the taxpayer’s unitary business.” The enterprise’s total income is then divided among the states where it conducts. Generally, a unitary business group is a group of related persons whose business activities or operations are interdependent

More specifically, a unitary business group is two or more persons that satisfy both a control test and one of two relationship tests. This methodology views a collection of legally distinct entities, such as subsidiaries or divisions, as a single economic enterprise What is the purpose of this schedule

The purpose of illinois schedule ub, combined apportionment for unitary business group, is to enable a unitary business group to determine the amount of its unitary business income that is attributable to illinois

A unitary business group’s business income includes all income that may be apportioned by formula among the states in which the group is. The concept of operational function simply recognizes that an asset can be part of a taxpayer’s unitary business even if what we may term a ‘unitary relationship’ does not exist between the ‘payor and the payee.’ Centralized management, unity of operations and ecinomics of scale the unitary business principle is a concept in u.s State corporate income tax law that determines whether the income of a multistate corporation can be apportioned among the states in which it operates

Under this principle, if a corporation's operations are sufficiently interrelated and integrated. The unitary method is a state tax accounting principle used to accurately determine the taxable income base for corporations operating across multiple state jurisdictions

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