In Re the Tax Appeal of Hawaiian Telephone Co.

OPINION OF THE COURT BY

KOBAYASHI, J.

The taxpayer, Hawaiian Telephone Company (hereinafter appellant or taxpayer), appeals from the decision of the tax appeal court, which was based upon stipulated facts, affirming the assessment of additional public service tax under HRS Chapter 239 by the Director of Taxation for the State of Hawaii (hereinafter Director), after disallowing exclusions taken by appellant from gross income. We reverse.

ISSUE

Can the appellant exclude from gross income, as defined for public service tax purposes in HRS Chapter 239, the amount it credited to the United States…