The First Appellate District affirmed a judgment. The court held that state tax laws did not permit a corporation to preferentially order between tax years the dividends paid to it by its wholly owned foreign subsidiaries.
Apple, Inc., was incorporated and had its principal place of business in California, but operated world-wide through wholly owned foreign subsidiaries. For the 1989 tax year, the Franchise Tax Board (FTB) applied a last-in-first-out (LIFO) proration of the income of Apple from repatriated dividends paid by several of those subsidiaries during the tax year.
