Kroger Co. v. Department of Revenue

WILHOIT, Judge.

This is an appeal by the Kroger Company from a judgment of the Franklin Circuit Court which reversed an order of the Kentucky Board of Tax Appeals ruling that money held by Kroger in an account enti-*707tied “Deferred Federal Income Taxes” was not “capital” as that term was defined in the applicable version of KRS 136.070(2) and therefore was not includible in determining the corporation license tax to be paid by Kroger for the years 1968 through 1973.

The circuit court held that while the account for deferred income taxes in one sense represented an accounting entry or…