Rain Bird Sprinkler Mfg. Corp. v. Franchise Tax Board

[229 CalApp3d Page 786] The Franchise Tax Board appeals a judgment in favor of Rain Bird Sprinkler Mfg. Corp. (RBSMC) in the corporation's action for a refund of taxes paid for the years 1974 and 1975. In this case, which deals with whether RBSMC and its affiliated corporations comprise a unitary business, the sole issue on appeal is whether majority ownership of corporations can be held by a family rather than by a single individual or entity to satisfy the ""unity of ownership"" prerequisite that must be established to justify the unitary business classification.