Gulf Oil Corp. v. Lindley

The Tax Commissioner has advanced the following proposition of law:

“R. C. 5733.04 does not allow a taxpayer in computing its net income to deduct those net operating losses incurred by *25subsidiary corporations in years prior to their merger into the taxpayer, during which they did no business in Ohio.”

By this single proposition of law, two issues are presented for disposition by this court:(1) Following a merger, do corporations succeed to the net operating losses of their former subsidiaries for purposes of the Ohio franchise tax?(2) If so, do corporations succeed to the net operating losses…