Dobson v. Huddleston

OPINION

REID, Chief Justice.

This case presents an appeal from the trial court’s adjudication, on motions for summary judgment, that a distribution of cash and debentures by Shoney’s, Inc. to its shareholders is subject to the state income tax. The judgment of the trial court is affirmed.

On July 25,1988, Shoney’s, Inc., a Tennessee corporation, pursuant to a resolution adopted by its board of directors, distributed to the owners of its 36,477,241 shares of outstanding stock per share $16 in cash and a Shoney’s debenture in the principal amount of $4. The total amount of the distribution,…