Vought Industries, Inc. v. Tracy

In this case, we are presented with the issue of whether a corporation involved in Chapter 11 bankruptcy proceedings is equivalent to either having a receiver appointed for it or having been “adjudicated bankrupt,” so that it qualifies for exemption under R.C. 5733.06(E) and need pay only the minimum franchise tax. For the reasons that follow, we answer that question in the negative.

At the outset we note that federal law does not preclude the taxation of corporations in bankruptcy. 3A Collier on Bankruptcy (14 Ed.1975) 1517-1518, Section 62.14(3). Taxation or exemption of corporations in…