Emerson Electric Co. v. Wasson

Gardner, Judge:

Emerson Electric Co. (Emerson), together with its wholly-owned subsidiary Therm-O-Disc, Incorporated (TOD), filed a consolidated state income tax return for the fiscal year ending September 30,1978. The State audited the return and imposed additional taxes in amount of $28,070 which were paid under protest; this action was brought to recover these taxes. The trial court found for the Tax Commission. We disagree and reverse.

At issue is how the “throwback rule” of Section 12-7-1170, Code of Laws of South Carolina , 1976, should be applied to a consolidated corporate tax return.

At…