DRS: Bulletin #7, Unincorporated Business Tax

{Connecticut Department of Revenue Services Logo}
25 Sigourney Street
Hartford CT 06106-5032
  STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES
 
 

This Bulletin is obsoleted by AN 94-6

Bulletin #7

Taxpayers' Information Service
7/15/81

Unincorporated Business Tax

WHEN MUST A UNINCORPORATED BUSINESS TAX REGISTRATION FORM BE FILED?

Immediately, but in no event later than the date on which the Declaration of Estimated Tax is due (July 15, 1981 for calendar year taxpayers; the fifteenth day of the seventh month of the income year for fiscal year taxpayers).

 

IF AN INDIVIDUAL OR ENTITY IS CURRENTLY REGISTERED TO COLLECT OTHER STATE TAXES, MUST IT REGISTER TO SUBMIT THE UNINCORPORATED BUSINESS TAX?

Yes

 

CAN AN ACCOUNTANT OR AGENT SIGN THE UNINCORPORATED BUSINESS TAX REGISTRATION FORM?

Yes

 

IF A PARTNERSHIP FILES A UNINCORPORATED BUSINESS TAX REGISTRATION FORM, WHAT NAME SHOULD APPEAR ON LINE 1?

The partnership's name or, if it has no trade name, the names of the partners.

 

WHERE CAN UNINCORPORATED BUSINESS TAX FORMS AND DECLARATIONS OF ESTIMATED TAX BE OBTAINED?

At the headquarters of the Department of Revenue Services, 25 Sigourney Street, Hartford, CT 06106 or at its branch offices:

10 Middle Street, Bridgeport, CT 06604
2105 State Street, Hamden, CT 06517
24 Wooster Avenue, Waterbury, CT 06708
2 Cliff Street, Norwich, CT 06360

MUST AN INDIVIDUAL, WHO REGISTERED FOR THE UNINCORPORATED BUSINESS TAX, RE-REGISTER, IF THE STATUS OF THE BUSINESS CHANGES, e.g., PARTNERSHIP TO CORPORATION, PROPRIETORSHIP TO PARTNERSHIP OR CORPORATION?

Yes

 

WILL A PARTNERSHIP WHICH INCORPORATES DURING THE INCOME YEAR BE REQUIRED TO FILE BOTH A UNINCORPORATED BUSINESS TAX RETURN AND A CORPORATION BUSINESS TAX RETURN?

Yes, but the Unincorporated Business Tax thresholds (gross income in excess of $50,000; adjusted net income in excess of $15,000) will be prorated.

 

IF THE GROSS INCOME OF AN UNINCORPORATED ENTITY IS IN EXCESS OF $50,000, BUT ITS ADJUSTED NET INCOME IS $15,000, IS IT SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

No, both thresholds must be met.

 

AN UNINCORPORATED ENTITY HAS GROSS INCOME IN EXCESS OF $50,000. THIS ENTITY HAS A PLACE OF BUSINESS IN A STATE OTHER THAN CONNECTICUT AND IS THEREBY ENTITLED TO APPORTION ITS NET INCOME. IS THE ENTITY SUBJECT TO THE UNINCORPORATED BUSINESS TAX IF THE GROSS INCOME ATTRIBUTABLE TO CONNECTICUT IS $50,000 OR LESS?

Yes, while the gross income threshold is subject to proration for unincorporated entities which incorporate or discontinue business during the income year, the threshold is not subject to reduction for unincorporated entities which apportion.

 

AN UNINCORPORATED ENTITY HAS GROSS INCOME IN EXCESS OF $50,000 AND ADJUSTED NET INCOME OF $10,000. IS REGISTRATION REQUIRED?

No. However, any unincorporated entity which has gross income in excess of $50,000 will be required to file an informational return within 105 days of the conclusion of its income year, even if its adjusted net income is $15,000 or less.

 

IS THE PARTNER'S SHARE OF THE PARTNERSHIP GROSS INCOME ADDED TO AN INDIVIDUAL OR ENTITY'S UNINCORPORATED BUSINESS GROSS INCOME IN DETERMINING WHETHER THE INDIVIDUAL OR ENTITY MEETS THE $50,000 GROSS INCOME THRESHOLD?

No

 

IF AN INDIVIDUAL OR ENTITY IS EXEMPT FROM THE UNINCORPORATED BUSINESS TAX THIS INCOME YEAR, WILL IT BE SUBJECT ITS NEXT INCOME YEAR, IF THE THRESHOLDS ARE MET?

Yes, and it must then register with this Department.

 

IF AN INDIVIDUAL OR ENTITY HAS MORE THAN ONE PLACE OF BUSINESS, MUST EACH PLACE OF BUSINESS BE REGISTERED SEPARATELY?

Yes, and each separate Unincorporated Business Tax Registration Form must list all other places of business.

 

WHAT IF ONE PLACE OF BUSINESS IS OUT-OF-STATE?

It should be listed on the registration forms of the other Connecticut place of business, but a separate registration form need not be filed.

 

MUST A PARTNERSHIP LIST ALL OF ITS PARTNERS?

Yes, including limited and nonresident partners.

 

IF AN INDIVIDUAL OR ENTITY CARRIES ON MORE THAN ONE BUSINESS, MUST EACH BUSINESS BE REGISTERED SEPARATELY?

Yes, a registration form must be filed for each business, noting other businesses carried on by that individual or entity.

 

IF AN INDIVIDUAL OR ENTITY CARRIES ON TWO SEPARATE AND DISTINCT BUSINESSES, ARE THE GROSS INCOMES AND ADJUSTED NET INCOMES OF THE BUSINESSES COMBINED TO DETERMINE IF THEY ARE SUBJECT TO THE TAX AND TO COMPUTE THE TAX?

Yes. If an individual or entity carries on two or more unincorporated businesses, all such businesses shall be treated as one unincorporated business.

 

IF AN INDIVIDUAL OR ENTITY LOCATED IN CONNECTICUT RENDERS SERVICES TO CUSTOMERS OR CLIENTS IN SEVERAL STATES, MAY IT APPORTION ITS NET INCOME WITHIN AND WITHOUT CONNECTICUT?

No, not unless it conducts business in another state by maintaining a place of business in that state.

 

WHAT CONSTITUTES CONDUCTING BUSINESS OUT OF STATE?
MUST AN OFFICE BE MAINTAINED OUT OF STATE?
MUST AN INCOME TAX BE PAID TO ANOTHER STATE?

To be conducting business out-of-state, an entity must have a regular place of business out-of-state. "Regular place of business" includes an office, factory, warehouse or other location used systematically and regularly by the entity to carry on its business. Factors used to determine if such a place exists are:

1. Nature of business.
2. Nature of activity engaged in out-of-state.
3. Type and location of each place of business used in activity, and
4. Regularity, continuity and permanency of each activity at the location.

Income and deductions from the rental of real property of the unincorporated business and gain or loss from the sale, exchange or other disposition thereof are not subject to apportionment under any provision of these statutes, but are considered as entirely derived from or connected with business in the state in which the real property is located.

 

ARE RESIDENTS WHO ONLY OWN OUT-OF-STATE RENTAL PROPERTY SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

No

 

ARE NON-RESIDENTS WHO ONLY OWN RENTAL PROPERTY IN CONNECTICUT SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

Yes

 

IF THE PARTNER IN A PARTNERSHIP, WHICH CARRIES ON BUSINESS SOLELY IN ANOTHER STATE, IS ITSELF TAXABLE IN CONNECTICUT AS AN UNINCORPORATED ENTITY, WILL ITS PARTNER SHARE BE INCLUDED IN ITS GROSS INCOME?

No

 

IS A REAL ESTATE PARTNERSHIP AN UNINCORPORATED BUSINESS?

Yes

 

IS AN INVESTMENT PARTNERSHIP?

Yes

 

IS A NONPROFIT ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX, SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

No, regardless of whether it has unrelated business taxable income.

 

HUSBAND HAS AN UNINCORPORATED BUSINESS. WIFE HAS HER OWN SEPARATE BUSINESS. DO HUSBAND AND WIFE EACH FILE UNINCORPORATED BUSINESS TAX RETURNS OR ARE THEY TREATED AS ONE TAXPAYER? WHAT IF HUSBAND AND WIFE FILE A JOINT FEDERAL RETURN?

Each would file a separate unincorporated business tax return, whether or not they file a joint federal return.

 

HUSBAND AND WIFE JOINTLY OWN RENTAL PROPERTY AND FILE A JOINT FEDERAL RETURN. DOES A PARTNERSHIP FOR UNINCORPORATED BUSINESS TAX PURPOSES EXIST?

Yes

 

HOW MANY REGISTRATION FORMS MUST BE FILED IN THE FOLLOWING SITUATION? (ASSUME EACH BUSINESS MEETS THRESHOLDS.)

a. Wife owns a business and files a Form 1040, Schedule C for federal tax purposes.
b. Husband owns a business and files a Form 1040, Schedule C for federal tax purposes.
c. Husband and wife jointly own rental property.

Three registrations must be filed: one for Wife; one for Husband and one for the partnership, Husband and Wife.

 

WIFE IS A SALARIED EMPLOYEE OF HUSBAND'S UNINCORPORATED BUSINESS. IS WIFE'S SALARY AN ALLOWABLE DEDUCTION FROM UNINCORPORATED BUSINESS GROSS INCOME?

Yes, if she is a bona fide employee and the recipient of reasonable compensation for the services rendered.

 

TWO PARTNERSHIPS ARE OWNED BY THE SAME EQUAL PARTNERS. ARE THESE PARTNERSHIPS TREATED AS ONE UNINCORPORATED BUSINESS?

Yes

 

WHAT IF THE INTERESTS OF EACH PARTNER IS DIFFERENT IN EACH PARTNERSHIP?

The partnerships would still be treated as one unincorporated business.

 

ASSUME THERE ARE THREE DIFFERENT PARTNERSHIPS (AB, AC AND AD) INVOLVING PARTNERS, A, B, C AND D. NONE OF THE PARTNERSHIPS BY ITSELF MEET THE THRESHOLD REQUIREMENTS. COMBINED, THE PARTNERSHIPS MEET THE THRESHOLD. HOW IS THE TAX COMPUTED?

Each partnership, because it is not part of one entity carrying on two or more unincorporated businesses, must meet the threshold test itself.

 

UNDER WHAT CIRCUMSTANCES WILL A PERSON WHO IS A PARTNER BE TREATED OTHER THAN IN HIS CAPACITY AS A PARTNER IN COMPUTING THE DEDUCTION ALLOWED BY SECTION 4?

If services rendered by the partner to the partnership are unrelated to the business activities of the partnership, then the cost of the services is deductible.

 

CAN A LOSS REPRESENTING A PARTNER'S DISTRIBUTIVE SHARE OFFSET OTHER INCOME RECEIVED BY AN ENTITY WHICH IS SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

Yes

 

IS A TRUST SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

Yes, it is an entity subject to the tax.

 

IS AN INVESTMENT TRUST SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

Yes, if the business activity of the trust is frequent, continuous and regular, the trust will be subject to the Unincorporated Business Tax.

 

A TRUST IS CREATED FOR ESTATE PLANNING PURPOSES TO PAY BENEFITS TO FAMILY BENEFICIARIES. ASSUMING IT MEETS THE THRESHOLD TEST, IS IT SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

Yes, if the business activity of the trust is frequent, continuous and regular.

 

AN EMPLOYEE IS PAID A $60,000 SALARY. THE SAME INDIVIDUAL RECEIVES $8,000 FROM HIS UNINCORPORATED BUSINESS, WHICH IS CLEARLY UNRELATED TO HIS CONCURRENT SALARIED EMPLOYMENT. WILL THE $60,000 SALARY BE ADDED TO INCOME RECEIVED FROM THE UNINCORPORATED BUSINESS?

The individual is not liable for the Unincorporated Business Tax, if the facts clearly indicate that the services rendered by the individual as an employee were not integrated and interrelated with his activities in connection with his unincorporated business so as to constitute part of a business regularly carried on by the unincorporated entity.

 

ARE THE FOLLOWING TYPES OF INCOME INCLUDED IN GROSS INCOME OF THE TAXPAYER AND SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

a. RENTAL INCOME?

Yes.

 

b. PARTNERSHIP DISTRIBUTION?

No, if such income is the sole source of income of the taxpayer. In such event, the partnership is the taxable entity.

 

c. INTEREST INCOME?

Yes, if interest income is generated by business operations.

 

d. HONORARIUMS?

Yes.

 

e. ROYALTIES?

Yes.

 

f. GAINS FROM INVOLUNTARY CONVERSION?

Yes.

 

WHAT PARTS OF FORM 1040, SCHEDULE E, ARE APPLICABLE IN THE COMPUTATION OF THE UNINCORPORATED BUSINESS TAX?

Parts 2 and 3.

 

IF AN INDIVIDUAL OR ENTITY SUBJECT TO THE UNINCORPORATED BUSINESS TAX RECEIVES DIVIDENDS, WILL THIS INCOME BE SUBJECT TO THE UNINCORPORATED BUSINESS TAX?

Yes, unless the dividends are subject to the Connecticut Capital Gains and Dividends tax.

 

MUST THE ACCELERATION OF DEPRECIATION EXPENSE BE TREATED IDENTICALLY FOR STATE AND FEDERAL TAX PURPOSES?

Yes

 

IS THE UNINCORPORATED BUSINESS TAX DEDUCTIBLE FROM GROSS INCOME IN ARRIVING AT NET INCOME?

No

 

A LIMITED PARTNERSHIP OWNS NET LEASE PROPERTY. FOR FEDERAL TAX PURPOSES, THE INTEREST EXPENSE IS SEPARATELY ALLOCATED TO EACH PARTNER INSTEAD OF BEING DEDUCTED FROM PARTNERSHIP GROSS INCOME. FOR STATE PURPOSES, WILL THE INTEREST BE DEDUCTED FROM THE GROSS INCOME OF THE PARTNERSHIP IN ORDER TO CALCULATE NET INCOME?

Yes

 

WHAT IS THE PENALTY FOR UNDERPAYMENT OF THE ESTIMATED TAX?

Interest at the rate of 1 1/4% per month or fraction thereof will be assessed on the portion of the estimated tax not timely paid.

 

WHAT IS THE TAX LIABILITY OF A PARTNERSHIP AND ITS PARTNERS IN THE FOLLOWING SITUATIONS?

Public Act 81-255, subsection 5 provides:

If a partner in an unincorporated business is itself taxable under section 2 to 21, inclusive, of this act or under chapters 207 to 212a, inclusive, an exemption is allowed for the amount of the partner's proportionate interest in the excess of the gross income over the deductions allowed under section 4 of this act, but this exemption shall be limited to the amount which is included in the partner's taxable net income that is attributable to the partnership and that is apportionable to this state, or which is included in a corporate partner's net income apportionable to this state.

Example 1:

F and G, individuals, are the two, equal partners in Partnership FG. Neither partner carries on an unincorporated business. FG conducts its entire business in Connecticut.

Partnership FG -
gross income $100,000
net income 50,000
LESS: section 7 deduction 25,000
taxable net income $ 25,000
tax $ 1,250

 

Example 2:

J and K, individuals, are the two, equal partners in Partnership JK. J's sole proprietorship has gross income of $45,000 and net income of $6,000; K does not carry on an unincorporated business. JK and J's proprietorship conduct their entire business in Connecticut.

J Proprietorship -
gross income $ 45,000
net income 6,000

 

The gross income threshold is not met and, therefore, the proprietorship is not subject to the Unincorporated Business Tax.

Partnership JK -
gross income $ 60,000
net income 17,000
LESS: section 7 deduction 15,000
taxable net income $ 2,000
tax (minimum tax is $250) $ 250

 

There is no section 5 exemption available to the partnership because neither partner is itself subject to the Unincorporated Business Tax.

 

Example 3:

X and Y, individuals, are the two, equal partners in Partnership XY. XY has gross income of $150,000 and net income of $50,000. X does not carry on an unincorporated business; Y's sold proprietorship has gross income of $100,000 and net income of $30,000. XY and Y's proprietorship conduct their entire business in Connecticut.

Y Proprietorship -
gross income $100,000
net income 30,000
ADD: Y's partner share from XY (50% of $50,000) 25,000
total net income $ 55,000
LESS: section 7 deduction 27,500
(50% of net income or $15,000, whichever amount is greater) 27,500

Partnership XY
gross income $150,000
net income 50,000
LESS: section 5 exemption (50 % of $25,000)
(amount included in Y's net income attributable to XY) 		12,500
balance $ 37,500
LESS: section 7 deduction 25,000
taxable net income $ 12,500
tax $ 625

 

Example 4:

L and M, individuals, are 60-40 partners, respectively, in Partnership LM. Both L and M operate sole proprietorships. L's and M's proprietorships and LM conduct their entire business in Connecticut.

L Proprietorship M Proprietorship
gross income $52,000 $20,000
net income 10,000 3,000

 

L Proprietorship's adjusted net income does not exceed $15,000, so neither proprietorship meets both thresholds.

Partnership LM
gross income $60,000
net income 20,000
LESS: section 7 deduction 15,000
taxable net income $ 5,000
tax $ 250

 

Public Act 81-255, subsection 6 provides in part:

"If the entire business of the taxpayer has not been conducted in this state, the tax shall be computed on the net income received from business conducted in this state. . . . . ."

 

Example 5:

S and T, individuals, are the two, equal partners in Partnership ST. S's sole proprietorship conducts business within and without Connecticut; $30,000 of its net income is received from business conducted in Connecticut. T does not carry on an unincorporated business. ST conducts its entire business in Connecticut.

S Proprietorship -
gross income $350,000
net income (amount subject to section 6 apportionment) 90,000
ADD: S's partner share from ST 40,000
total net income $130,000
LESS: section 7 deduction 65,000
balance prior to section 6 apportionment $ 65,000
LESS: amount apportioned without Connecticut ($90,000-$30,000) 60,000
taxable net income $ 5,000
tax $ 250

Partnership ST
gross income $300,000
net income 80,000
LESS: section 5 exemption (50% of $40,000) (amount included in S's net income attributable to ST) 20,000

________

balance prior to section 7 deduction $ 60,000
LESS: section 7 deduction 40,000
taxable net income $ 20,000
tax $ 1,000

 

Example 6:

P and Q, individuals, are the two, equal partners in Partnership PQ. P's sole proprietorship conducts business within and without Connecticut; $40,000 of its net income is received from business conducted in Connecticut. Q does not carry on a unincorporated business. PQ conducts business within and without Connecticut; $150,000 of its net income is received from business conducted in Connecticut.

P Proprietorship -
gross income $150,000
net income (amount subject to section 6 apportionment) 75,000
ADD: P's partner share from PQ (50% of $150,000) 75,000
Total net income $150,000
LESS: section 7 deduction 75,000
Balance prior to section 6 apportionment $ 75,000
LESS: amount apportioned without Connecticut ($75,000-$40,000) 35,000
taxable net income $ 40,000
tax $ 2,000

Partnership PQ -
gross income $500,000
net income 250,000
LESS: section 5 exemption (50% of $75,000) 37,500
balance prior to section 7 deduction $212,500
LESS: section 7 deduction 125,000
balance prior to section 6 apportionment $ 87,500
LESS: amount apportioned without Connecticut ($250,000-$150,000) 100,000
taxable net income $ 0
tax $ 250

 

Example 7:

A and B, individuals, are two, equal partners in Partnership AB. A's sole proprietorship conducts business within and without Connecticut; $60,000 of its net income is received from business conducted in Connecticut. B does not carry on an unincorporated business. AB conducts business within and without Connecticut; $200,000 of its net income is received from business conducted in Connecticut.

A Proprietorship -
gross income $400,000
net income (amount subject to section 6 apportionment) 100,000
ADD: A's partner share from AB (50% of $200,000) 100,000
Total net income $200,000
LESS: section 7 deduction 100,000
Balance prior to section 6 apportionment $100,000
LESS: amount apportioned without Connecticut ($100,000-$60,000) 40,000
taxable net income $ 60,000
tax $ 3,000

Partnership AB -
gross income $600,000
net income 300,000
LESS: section 5 exemption (50% of $100,000) 50,000
balance prior to section 7 deduction $250,000
LESS: section 7 deduction 150,000
balance prior to section 6 apportionment $100,000
LESS: amount apportioned without Connecticut ($300,000-$200,000) 100,000
taxable net income $ 0
tax $ 250

 

Example 8:

C and D, corporations, are the two, equal joint venturers in Joint Venture CD. C carries on business solely within Connecticut and cannot apportion its net income. D carries on business within and without Connecticut; its apportionment fraction is 10%. CD conducts business solely within Connecticut.

C Corporation
net income (includes joint venture share) $ 150,000
entire net income (net income apportioned to Connecticut) 150,000
tax (10% of entire net income) $15,000

D Corporation
net income (includes joint venture share) $1,000,000
entire net income 100,000
tax $10,000

Joint Venture CD
gross income $ 300,000
net income 100,000
LESS: section 5 exemption 100,000
Balance prior to section 7 deduction $ 0
LESS: section 7 deduction 50,000
taxable net income $ (50,000)
tax $250

 

Example 9:

V and W, corporations, are the two, equal joint venturers in Joint Venture VW. V carries on business solely within Connecticut and cannot apportion its net income. W carries on business within and without Connecticut; its apportionment fraction is 10%. VW conducts business within and without Connecticut; $50,000 of its net income is received from business conducted in Connecticut.

V Corporation
net income (includes joint venture share) $100,000
entire net income 100,000
tax $ 10,000

W Corporation
net income (includes joint venture share) $300,000
entire net income 30,000
tax $ 3,000

Joint Venture VW
gross income $700,000
net income 150,000
LESS: section 5 exemption 150,000
balance prior to section 7 deduction $ 0
LESS: section 7 deduction 75,000
balance prior to section 6 apportionment $ (75,000)
LESS: amount apportioned without Connecticut ($150,000-$50,000) 100,000
taxable net income $(175,000)
tax $250

 

Example 10:

H and I, individuals, are the two, equal partners in Partnership HI. H and I, Connecticut residents, do not themselves carry on an unincorporated business. HI conducts its entire business in Connecticut.

HI's federal income tax return reports:
gross income $150,000
net (ordinary) income 50,000

Its Schedule K reports:
ordinary income $ 50,000
net long term capital gains 10,000
dividends (qualifying for exclusion) 3,000
payments on behalf of partners to Keogh Plan 2,500
payments on behalf of partners to IRA 3,000
interest paid on investment indebtedness 7,500

HI Partnership - Unincorporated Business Tax Return
net (ordinary) income $ 50,000
ADD: payments to partners' retirement plans:
Keogh 2,500
IRA 3,000 5,500
$ 55,500
LESS: interest on investment indebtedness 7,500
net income $ 48,000
LESS: section 7 deduction
($15,000 or 50% of net, whichever is greater), 24,000
(payment to retirement plan) ($1,750 x 2) 3,500 27,500
taxable net income $ 20,500
tax $ 1,025

 

Note that the capital gains and dividends were excluded from the gross income of the partnership, because they were subject to the Connecticut capital gains and dividends tax.

Example 11:

N and O, individuals, are the two, equal partners in Partnership NO. N, a Connecticut resident, and O, a non-resident, do not themselves carry on an unincorporated business. NO conducts its entire business in Connecticut.

NO's Financial Statement Reports:
sales $150,000
dividends 10,000
capital gains 20,000
expenses 65,000
net (ordinary) income 85,000

NO Partnership -Unincorporated Business Tax Return
net (ordinary) income $ 85,000
ADD:
dividends 10,000
capital gains 20,000 30,000
Total $115,000
LESS: N's share of dividends and capital gains 15,000
net income $100,000
LESS: section 7 deduction 50,000
taxable net income $ 50,000
tax $ 2,500

 

Note that the non-resident partner's share of the capital gains and dividends was not excluded from the gross income of the partnership.

The above questions were submitted at seminars conducted by the Connecticut Bar Association, Association of Certified Public Accountants and Association of Public Accountants. The answers to the questions are submitted to aid and assist the practitioner and taxpayer in understanding the provisions of the Unincorporated Business Tax and the new additional tax base of the Corporation Business Tax. However, the answers are subject to modification in the promulgation of regulations pertaining to the Unincorporated Business Tax and the Corporation Business Tax.