Farrell Enterprises, Inc. v. Commissioner of Revenue

Farrell Enterprises, Inc. (Farrell), a holding company,1 appeals from the refusal of the Commissioner of Revenue (commissioner) to abate, in part, its 1991 corporate excise tax that was assessed under G. L. c. 63, § 39, for the year 1991. The single issue on appeal is whether the net operating losses incurred in taxable years prior to 1991 by three *565members of the corporate group consisting of Farrell and its six subsidiaries may be carried forward to offset the income of the group as a whole, where the three members in question reported no taxable Massachusetts income in 1991. Both the…