Crocker-Anglo National Bank v. Franchise Tax Board

Plaintiffs appeal from a judgment in favor of defendant denying them a refund of personal income taxes.

Questions Presented

1. Was the Canadian income tax paid by California residents on corporate dividends a “net income tax” under section 18001 of the Revenue and Taxation Code (formerly § 17976)?

2. Is section 18001 unconstitutional ?

Record

The facts were stipulated. Plaintiffs during the years 1949-1953, inclusive, owned stock in a Canadian corporation which engaged in no business in Californa and all of whose property and activity was in Canada. Plaintiffs at all times were residing and…