UNB Investment Co. v. Director, Division of Taxation

MENYUK, J.T.C.

This action contests a Corporation Business Tax deficiency assessment and comes before the court on cross-motions for summary judgment. At issue is whether defendant Director, Division of Taxation, properly disallowed a deduction from entire net income for dividends received by plaintiff from its wholly owned subsidiary. The sole reason for the disallowance was that the subsidiary was a real estate investment trust (“REIT”). The issues in this case are wholly matters of law, and there are no facts in dispute. The matter is therefore ripe for summary judgment. R. 4:46-2(e).

UNB…