In Re Tax Appeal of Aloha Motors, Inc.

OPINION OF THE COURT BY

KOBAYASHI, J.

This is an appeal from the findings of fact and conclusions of law and judgment of the tax appeal court which, inter alia, concluded that the credits given by manufacturers to Aloha Motors, Inc., and the Edward R. Bacon Company of Hawaii, Limited, hereinafter appellants, for the performance of warranty work by the appellants did not qualify as reimbursements under HRS § 237-20, but constituted gross income, and were therefore subject to the general excise tax pursuant to HRS § 237. We affirm.

ISSUE

Whether the payments received by the appellants for parts and…