Mobay Chemical Corp. v. Director, Division of Taxation

The opinion of the Court was delivered by

SCHREIBER, J.

This case, like its companion, Fedders Financial Corp. v. Director, Div. of Taxation, 96 N.J. 376 (1984), *409requires us to interpret provisions of the New Jersey Corporation Business Tax Act (the Act). The tax under the Act is measured by a corporation’s net worth and net income. One provision in dispute made a corporation’s “indebtedness owing directly or indirectly” to holders of 10% or more of the corporation’s outstanding shares includible in the corporation’s net worth. N.J.S.A. 54:10A-4(d).1 The other disputed provision stated that 90%…