Brunswick Corp. v. State

Brunswick brought suit in the Court of Claims for a refund of $16,900 out of the $103,076 franchise privilege tax it paid in connection with its 1967 Michigan Annual Report.

The $16,900 is the amount of additional annual taxes for 1967 that resulted from the state’s inclusion of a liability account entitled “Deferred Federal Income Taxes” in Brunswick’s taxable “surplus.” MCLA § 450.304 (Stat Ann 1970 Cum Supp § 21-.205).* 1 Such deferred income taxes represented taxes payable by Brunswick as it collected cash payments on installment receivables. The Court of Claims held that the amount of…