1. (1) A banking corporation or bank holding company which is exercising its corporate franchise or doing business in New York State in a corporate or organized capacity is required to file a return on a combined basis covering itself and the following corporations:

   1. (i) any banking corporation or bank holding company which owns or controls, directly or indirectly, 80 percent or more of its voting stock; and
   2. (ii) any banking corporation or bank holding company in which it owns or controls, directly or indirectly, 80 percent or more of the voting stock.
2. (2) For provisions regarding a banking corporation or a bank holding company which is not a taxpayer, see section 21-2.6(a) of this Subpart.
3. (b) It will be presumed that the tax liability of any banking corporation or bank holding company described in paragraph (a)(1) of this section will be properly reflected when such corporation reports on a combined basis. Such a corporation may nevertheless be excluded from the combined return if the taxpayer or the Tax Commission shows that the inclusion of such a corporation in the combined return fails to properly reflect the tax liability of such corporation under article 32 of the Tax Law. Tax liability may be deemed to be improperly reflected because of intercorporate transactions or some agreement, understanding, arrangement or transaction referred to in section 18-1.3 of this Title.
4. (c) A banking corporation or bank holding company described in paragraph (a)(1) of this section which meets the applicable requirements may be excluded from a combined return in accordance with section 21-2.5 of this Subpart.
5. (d) A group of corporations filing a combined return pursuant to paragraph (a)(1) of this section must submit all of the information described in section 21-2.5(b)(1) and (2) of this Subpart with its combined return. Such group may be required to submit the information required by paragraph (b)(3) of such section at another time, such as in conjunction with an audit.

Tax Law, § 1462(f)

(a)