Court Opinion

ID: 9689033
Source: CourtListenerOpinion
Date Created: 2023-08-24 18:17:02.70946+00
Date Added: 2024-06-11T18:18:43.589095
License: Public Domain

Allen, J.
(dissenting). Respectfully, I dissent. It is inconceivable that the Legislature intended a subchapter S corporation to escape all liability on the technicality that it is the shareholders, rather than the corporation, who are liable for the distributive income of the corporation. The obvious intent of the Legislature was that the minimum tax imposed under § 57(3) should reflect the corporation’s business activities for the period of 1971 through 1975. Admittedly, there is no specific language in the Single Business Tax Act which specifically authorizes substitution of shareholder liability for corporate liability. But the absence of such language should not preclude inferring such a provision when the intent of the Legislature is so clear. The statutory construction urged by the taxpayer and approved by the majority opinion leads to no tax at all. The interpretation given § 57(3) by the Michigan Tax Tribunal reflects the corporation’s business activity. That is what the Legislature intended. I would affirm.