DocketNumber: Nos. 32572 and 32573
Citation Numbers: 156 Ohio St. (N.S.) 379
Judges: Hart, Matthias, Middleton, Stewart, Weygandt, Zimmerman
Filed Date: 12/19/1951
Status: Precedential
Modified Date: 10/18/2022
The question presented is whether the percentages allowed for bad-debt reserves are so small as to be unreasonable or unlawful.
Under the provisions of Section 1464-3, General Code, the Tax Commissioner is authorized to promulgate rules for the conduct of the work of the Department of Taxation. Pursuant thereto the commissioner promulgated the following rule:
“In determining the amount of reserve against accounts receivable of banks and similar financial institutions and dealers in intangibles, we shall henceforth first determine the actual average charge-off percentage over the preceding five-year period, less actual recoveries, and then add to this actual average charge-off percentage one-half of 1 per cent as a correction factor for those undetermined costs such as collection costs, attorney fees and the like.
“In those cases where actual facts support an additional allowance, special consideration shall be given.”
This rule or formula was followed by the Tax Commissioner and the Board of Tax Appeals, and the appellants contend that this was unreasonable and unlawful.
In the case of Capital Finance Corp. v. Glander, Tax Commr., 153 Ohio St., 50, 90 N. E. (2d), 673, this procedure was approved by this court.
The decisions in these cases are neither unreasonable nor unlawful and are, therefore, affirmed.
Decisions affirmed.