Industrial Air Products Co. v. State Tax Commission

The Oregon State Tax Commission appeals from a decree in the circuit court which declared void a deficiency assessment against Industrial Air Products Co., an Oregon corporation, for the tax year ending January 81, 1956.

The case concerns the corporate-excise-tax consequences of a number of intercorporate transactions. We shall set out the facts substantially as they were found by the trial court:

In 1948, five brothers, Gilbert, Harold, Leonard, Manuel, and Morris Schnitzer, were equal owners of the stock of Schnitzer Steel Products Co., an Oregon corporation. (Throughout the opinion this…