West Point Pepperell, Inc. v. State Department of Revenue

This Court granted the writ in this case to review a question of the right of the State to collect a foreign franchise tax. The specific legal question presented was whether reserve accounts of a foreign corporation set up for deferred federal income tax, deferred employee compensation, and deferred employee pension and benefits are included within the definition of “capital employed” in the state and are therefore subject to Alabama’s foreign corporation franchise tax. The majority, after review, decides to quash the writ as improvidently granted. I must disagree, and herein I state the…