The Limited Stores v. Franchise Tax Board
This matter has been remanded by the Supreme Court (S136922) with directions to vacate our previous decision (The Limited Stores, Inc. v. Franchise Tax Board (July 28, 2005, A102915) [nonpub. opn.]) and reconsider the cause in light of Microsoft Corp. v. Franchise Tax Bd. (2006) 39 Cal.4th 750 (Microsoft) and General Motors Corp. v. Franchise Tax Bd. (2006) 39 Cal.4th 773. In our earlier decision we affirmed a summary judgment granted in favor of the Franchise Tax Board (FTB). Court concluded that the full price of securities held to maturity and redeemed were not properly treated as gross receipts by the taxpayer under the Uniform Division of Income for Tax Purposes Act (UDITPA) (Rev. & Tax. Code, 25120 et seq.). Microsoft, however, reached a contrary result. Court vacate our previous decision, and affirm the judgment of the trial court, albeit on a different ground.
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