Rib Lake Lumber Co. v. Conway

The following opinion was filed June 29, 1933: .

Rosenberry, C. J.

The applicable provision of the income tax act is now sec. 71.03, which provides:

“Every corporation, joint stock company or association shall be allowed to make from its gross income the following deductions:

“(2) . . . interest paid during the year in the operation of the business from which its income is derived.”

In determining whether or not the interest paid by the Delaware Company upon its debentures was deductible the Tax Commission said:

“As no new assets came to the taxpayer by reason of its bond issue, and as that issue…