Determination of net worth of corporation; determination by commissioner absent disclosure of true net worth on corporation’s books or return.

For the purpose of ascertaining the corporate net worth tax imposed by this article, the net worth of the corporation shall be presumed to be the net worth as disclosed on the corporation’s books and as reflected on the return required to be filed annually by the corporation. In the event the commissioner ascertains that the books of any corporation reporting under this article or the return filed for any corporation reporting under this article, as provided in Code Section 48-13-77, does not disclose the true net worth of the corporation, the net worth of the corporation shall have the value fixed by the commissioner from any information obtained by the commissioner from any source. History. Ga. L. 1929, p. 84, § 1; Ga. L. 1931, Ex. Sess., p. 76, § 1; Code 1933, § 92-2401; Ga. L. 1935, p. 11, § 2; Ga. L. 1951, p. 157, § 5a; Ga. L. 1952, p. 371, § 1; Code 1933, § 92-2401, enacted by Ga. L. 1976, p. 1580, § 1; Code 1933, § 91A-6305, enacted by Ga. L. 1978, p. 309, § 2. Law reviews. For article discussing recordation of unrealized appreciation and the assessment of corporate franchise tax, see 25 Ga. B. J. 152 (1962). JUDICIAL DECISIONS Term “net worth” is the difference between assets and liabilities. Oxford v. Macon Tel. Publishing Co., 104 Ga. App. 788, 123 S.E.2d 277, 1961 Ga. App. LEXIS 802 (1961). “Net worth” and “true net worth” not limited to issued capital stock, paid-in surplus, and earned surplus. — Measure of this tax shall be the true net worth of the corporation and the particular expression “including issued capital stock, paid-in surplus and earned surplus” following the words “net worth” in no way limits the meaning of the term “net worth” or “true net worth” as found in other parts of former Code 1933, Ch. 92-24. Oxford v. Macon Tel. Publishing Co., 104 Ga. App. 788, 123 S.E.2d 277, 1961 Ga. App. LEXIS 802 (1961). Increase in valuation, known as “revaluation surplus,” is part of the net assets or net worth of a corporation, and is included in the true net worth of the corporation as part of the measure of the corporate franchise tax imposed by this section when such “revaluation surplus” is included in the regular balance sheets of the corporation. Oxford v. Macon Tel. Publishing Co., 104 Ga. App. 788, 123 S.E.2d 277, 1961 Ga. App. LEXIS 802 (1961). RESEARCH REFERENCES C.J.S. 84 C.J.S., Taxation, § 610 et seq. ALR. Transactions between affiliated corporations as basis of “bad debt” deduction in computing income tax or corporate franchise tax, 128 A.L.R. 1251. Inclusion of investments in stock of other corporations in fixing base for taxation of corporation, 11 A.L.R.2d 323.