South Carolina Department of Revenue v. Anonymous Co. A

Justice PLEICONES:

Companies A and B (Respondents) are two separate corporations with the same owners. Company A (Dealer) sells used cars and then sells the retail installment sales contracts to Company B (Finance Company). S.C.Code Ann. § 12-36-90(2)(h), allows a taxpayer to take a sales tax credit for those installment contracts on which the purchaser fails to make payments and which are consequently charged off as bad debts or uncollectible accounts. Pursuant to the statute, Respondents seek a refund of sales taxes for installment contracts which became uncollectible after Dealer sold them…