HARRY HUGHES, Governor

3477

(2)  The report shall be in such form as the
Director shall prescribe. At the same time the financial
institution shall pay to the Director the amount of tax
indicated to be due according to such report, after
crediting the amount paid with the declaration filed under
subsection (d).

(3)  The tax imposed by this section shall be
collected and administered by the Director in accordance
with the provisions of the subtitle "Income Tax" of this
article not inconsistent [herewith] WITH THIS SECTION.

(4)  Reference in the subtitle "Income Tax" to
the Comptroller of the Treasury shall be taken to mean the
Director for purposes of this section, and the Director
shall have the same administrative and rule-making powers
and duties with respect to the franchise tax imposed hereby
as the Comptroller has with respect to income tax.

(F) The failure [or wilful failure] of a financial
institution to file a return, [or] report, or declaration or
pay a tax or any portion of a tax, as required or due under
this section, shall have the effect and be subject to the
procedures and penalties provided in §§ 320 and 322 and
elsewhere in the subtitle "Income Tax" of this article, as
well as civil procedures authorized for the collection of
ordinary taxes.

[(f)] (G) The Director [shall have the right to] MAY
allocate net income of financial institutions in accordance
with gross volume of transactions by such financial
institution within and without this State, without regard to
methods of allocation which may be prescribed by § 316 of
this article or regulations of the Comptroller thereunder.

[(g)] (H) (1) Interest received by a holding company[,
as defined herein,] from one of its subsidiary corporations
shall be allocated to this State[,] only to the extent that
such interest is derived from the trade or business of the
subsidiary corporation within this State.

(2) For purposes of this section, a "holding
company" is a corporation subject to tax under this section,
whose activity is confined to the maintenance and management
of its intangible investments and the collection and
distribution of the income from such investments.

(I) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS
HAVE THE MEANINGS INDICATED.

(II) "APPLICABLE EXPENSES" MEANS ANY
EXPENSE OR OTHER DEDUCTION DIRECTLY OR INDIRECTLY
ATTRIBUTABLE TO ELIGIBLE GROSS EARNINGS.