Bennett Glass & Paint Co. v. State Tax Commission

WOLFE, Justice.

This case arises under our Corporation Franchise Tax Act. The State Tax Commission refused to allow a deduction of $60,000, claimed by Bennett Glass and Paint Company in its 1935 corporate franchise tax return under the classification of “bad debts.”

The facts are undisputed. In 1933 Bennett Glass and Paint Company, hereinafter called the parent corporation, organized a subsidiary corporation, The Washoff Company, for the purpose of distributing a certain product, the formula of which was owned by the parent corporation. Plaintiff transferred this formula to the subsidiary in…