People Ex Rel. Northern Finance Corp. v. . Law

The statute imposes upon every domestic corporation, and also upon every foreign corporation doing business within the state, a franchise tax to be computed upon the basis of its entire net income, which income is presumably the same as the entire net income “ upon which such corporation is required to pay a tax to the United States ” (Tax Law [Cons. Laws, ch. 60], art. 9a, § 209). In the computation of net income, the United States permits deduction of “ amounts received as dividends from a corporation taxable under this title upon its net income” (U. S. Revenue Act of 1918, § 234). The…