SAFEWAY STORES, INC. v. FRANCHISE TAX BOARD

Docket No. S.F. 22757.

3 Cal.3d 745 (1970)

478 P.2d 48

91 Cal. Rptr. 616

SAFEWAY STORES, INCORPORATED, Plaintiff and Respondent, v. FRANCHISE TAX BOARD, Defendant and Appellant.

Supreme Court of California. In Bank.

December 28, 1970.


Attorney(s) appearing for the Case

COUNSEL

Thomas C. Lynch, Attorney General, Ernest P. Goodman, Assistant Attorney General, and John J. Klee, Jr., Deputy Attorney General, for Defendant and Appellant.

Orrick, Herrington, Rowley & Sutcliffe and William D. McKee for Plaintiff and Respondent.

Pillsbury, Madison & Sutro, John A. Sutro, Francis N. Marshall, Noble K. Gregory, Frank H. Roberts and Toni Rembe as Amici Curiae on behalf of Plaintiff and Respondent.


OPINION

BURKE, J.

Plaintiff Safeway Stores, Inc. (Safeway) recovered judgment for a refund of a portion of the franchise taxes paid to the State of California for the income years 1947 through 1950, and defendant Franchise Tax Board1 appeals. As will appear, we have concluded that the trial court erred in its view that certain dividends paid to Safeway by its...

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