Bermite Powder Co. v. Franchise Tax Board

Bermite Powder Company sued to recover interest upon the amount of a tax claim which was allowed. The appeal of the Franchise Tax Board is from a judgment in favor of the taxpayer.

As stated in the stipulation of facts, Bermite paid to the state taxes based upon its income for the years 1943 and 1944. After the renegotiation of its contract with the federal government, Bermite refunded about two-thirds of the amount which it had received during those years. The Franchise Tax Commissioner allowed Bermite’s claim for more than $30,000 paid as taxes but rejected its demand for interest upon the…