C. W. Matthews Contracting Co. v. South Carolina Tax Commission

Gregory, Justice:

This appeal comes from an order dismissing the action brought by Matthews Corporation (hereinafter Matthews) for the recovery of taxes under § 65-2662 of the S. C. Code (Cum. Supp. 1975).

The controversy began when appellant, a Georgia corporation specializing in road building, took deductions in 1969 and 1970 for losses sustained in 1965, 1966 and 1967. Appellant relied on § 65-259(12) of the Code (1962), which allows “taxpayers who have established a new business or industry in this State” to carry forward losses suffered during their first three years of operation for a…