Continental Telephone Co. of Utah v. State Tax Commission

CROCKETT, Justice:

The plaintiffs, Midland Telephone Company, providing service in Grand County, and Utah Telephone Company, 1 providing service in Box Elder County, are both subsidiaries of Continental Telephone Corporation, a corporation with nationwide operations. They claimed as deductions on their Utah tax returns, payments transferred to Continental in connection with the preparation and payment of consolidated federal tax returns for the tax years 1965 through 1970. The Tax Commission partially disallowed plaintiffs’' claimed deductions for payment of federal income taxes, by reducing…