Kroger Co. v. Bowers

The taxpayer contends that its use of the optional methods of depreciation for federal income tax purposes has the effect of merely suspending the payment of a portion of that tax which will certainly be paid in future years as its depreciable assets reach exhaustion and the rate of depreciation decelerates.

*78It, therefore, maintains that the total amount which it characterizes as “deferred income taxes” is a liability and as such is deductible from its surplus in computing its annual corporation franchise tax.

The difficulty with this contention is that Section 5733.05, Revised Code, expressly…