Leathers v. Jacuzzi, Inc.

ROBERT H. Dudley, Justice.

The sole issue in this case is whether Jacuzzi, Inc., and Jacdisc, Inc., its domestic international sales corporation, are entided to file combined income-tax returns. The Arkansas Department of Finance and Administration policy does not permit combined returns, and the Department did not authorize the corporations to file combined returns. The administrative law judge upheld the Department’s actions and ruled that the two corporations could not file combined returns. The chancellor reversed on the ground that combined returns would give a “clear reflection of income…