Client is a K-1 owner of a worldwide conglomerate. MA has an excise tax based on sales (above $6m and above $9m). Client has no activity, no sales, no people, no nothing in MA. Per the MA auditor you pay the excise tax based on all tier levels of MA sales (this is double taxation as conglomerate pays and then lower tiers pay on their %). 

Issue - client is 10% sharing of profits/losses but 2% ownership. At 10% they're above the thresholds.  At 2% they're not.

No one has answer as to what % the math is based on. The law only addresses common ownership, tier levels, etc. Does anyone here know if it's % of ownership or % of profit/loss x worldwide sales that is the calculation?