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Tax Liability Not an Operation Expense
Publication year - 1994
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.1551-8833.1994.tb06202.x
Subject(s) - taxable income , shareholder , business , liability , commission , income tax , service (business) , corporation , tax haven , finance , economics , accounting , public economics , double taxation , tax avoidance , corporate governance , marketing
Organized as a subchapter S corporation, South Haven, Indiana, Water Works (SHWW) did not pay or incur income taxes as a taxable entity. Its income flowed through to the shareholders, who had to report it on their individual tax returns. SHWW petitioned for an increase in its water service and sewage disposal rates for its rural Porter County service area. The utility regulatory commission concluded that SHWW could not recover through increased rates the individual income tax attributable to the shareholders.