GATX Terminals Corp. v. Director

Plaintiff-taxpayer GATX Terminals Corporation appeals from a decision of the Tax Court which affirmed the determination of the Director of the Division of Taxation that plaintiff was liable under the Corporate Business Tax Act, N.J.S.A. 54:10A-1, et seq., for a deficiency for the 1976 tax year.

In issue are N.J.S.A. 54:10A-4(d)(5),1 which, for the tax year in question, required inclusion in the calculation of net worth of “the amount of all indebtedness owing directly or indirectly to holders of 10% or more” of the corporation stock, and its companion provision, N.J.S.A. 54:10A-4(k)(2)(E),…