Ladish Co. v. Department of Revenue

With the facts stipulated, the issues raised on this appeal are issues of law as to right of the taxpayer to deduct pay accruals for the last nine months of each calendar year.

Time of accrual.

Both parties apparently agree that if the employees’ right to vacation pay has vested in such employees at the end of the calendar year, then the amount of money in the employer’s vacation pay account is properly deductible. Read together, the statute governing corporate deductions 1 and the statute defining the terms, “paid” or “actually paid,” 2 do compel the conclusion that payments to employees…