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Hypothetical tax expense not allowed in rate setting
Publication year - 1983
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1983.tb05132.x
Subject(s) - liability , tax rate , business , monetary economics , economics , actuarial science , finance
May a subsidiary water company claim as an expense, for rate‐making purposes, an amount it would owe for income taxes as a single entity when its actual tax liability was zero after a consolidated return was filed? An Illinois appellate court ruled that such a practice could not be allowed.