Revenue Cabinet v. Babcock & Wilcox Co.

OPINION

PAISLEY, Senior Judge.

This is an appeal by the Revenue Cabinet, now known as the Department of Revenue (“Revenue”), from an opinion and order of the Franklin Circuit Court ruling that it did not have enough information to determine whether all or part of a “Reserve for Product Liability” account held by the Babcock and Wilcox Company (B & W) is “surplus” and therefore taxable “capital” pursuant to Kentucky Revised Statutes (KRS) 136.070. Revenue contends that B & W failed to preserve for review the issue of whether the account is capital, and that even if it had, the entire account…