Richard's Auto City, Inc. v. Director, Division of Taxation

The opinion of the Court was delivered by

HANDLER, J.

This appeal involves a conflict over the interpretation of provisions of the Corporation Business Tax Act that permit certain net-operating losses to be carried over and deducted in successive tax years. Specifically, at issue is whether those provisions permit the net-operating losses incurred in past tax years by a corporation that has been merged into a successor corporation to be carried over and deducted by the surviving corporation in a subsequent tax year.

In this ease, the Director of the Division of Taxation disallowed the deduction…