Southern Pacific Co. v. McColgan

Plaintiff, Southern Pacific Company, appeals from a judgment denying it a refund of taxes assessed against it for the taxable year 1935 under the Bank and Corporation Franchise Tax Act. (Stats. 1929, p. 19, as amended; Deering’s Gen. Laws, 1931, Act 8488, p. 4763; 1933 Supp., p. 2329; 1935 Supp., p. 1929.)

Under the act, taxes for the year 1935 are computed on 1934 income. (§ 4.) In making its tax return plaintiff showed no net income for the year 1934, but a net loss of $7,359,133.03. Accordingly, plaintiff paid the minimum flat tax of $25. Thereafter, the defendant Franchise Tax Commissioner…