Bp Comm. Alaska v. Central Collection

JOURNAL ENTRY AND OPINION

The affiliates (usually called "subsidiaries") of Ohio corporations can choose to pay municipal income taxes by consolidating their returns with other affiliates of the parent corporation. After having filed consolidated tax returns in the city of Cleveland for nine years, six affiliates of BP America asked the administrator of the Central Collection Agency ("CCA") for permission to deconsolidate their returns because, they no longer transacted any business nor had any connection with the city. The administrator denied permission, so the affiliates brought a…