American Bakeries Company v. Johnson

Two questions are presented for determination on this appeal:

1. Whether dividends paid to the plaintiff (taxpayer) by its subsidiary corporation derived from the earnings of the subsidiary’s manufacture and sales of bakery products outside of North Carolina, are subject to income taxes imposed by North Carolina pursuant to the provisions of G.S. 105-134.

2. Whether the North Carolina Commissioner oí Revenue is limited in adjustment of plaintiff’s income tax returns to the area of Federal changes when changes in the Federal income tax returns are made by the Federal authorities; and more than…