Tax Rules: Final: 5703-5
5703-5-05 - Taxes excludable in
computing the corporate franchise tax under the net worth
(A) This rule first applies for tax year 1990. It prescribes
those taxes that are excludable in computing the corporate
franchise tax under the net worth basis. Rule 5703-5-01 of
the Administrative Code defines terms used in this rule.
(B) For purposes of determining the value of a corporation's
issued and outstanding shares of stock under the net worth
basis, taxes reflected on the books of the corporation may be
excluded in accordance with division (A)(2) of section
5733.05 of the Revised Code and "Kroger Co. v. Bowers"
(1965), 3 Ohio St. 2d 76, if both of the following conditions
(1) The taxes were occasioned by or accrued because of the
activities or operations of the corporation for or during the
(2) The taxes are due and payable during the tax year.
(C) Taxes not excludable under paragraph (B) of this rule
shall not be excluded as "other valuation reserves" pursuant
to division (A)(1) of section 5733.05 of the Revised Code.
The term "other valuation reserves" applies solely to those
reserves that are regularly and consistently employed by the
corporation in the ordinary course of its business and that
are recognized and regarded as part of the corporation's
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5733.031, 5733.04, 5733.05
Prior effective dates: 1-1-72