Tax Court rules against Palatine company

WASHINGTON--In a precedent-setting ruling, the U.S. Tax Courtfound Square D Co. of Palatine couldn't deduct accrued foreigninterest until it was paid.

Judge Joseph Gale's opinion, affirmed by nine other tax courtjudges, reverses an earlier tax court decision that allowed companiesto deduct unpaid interest as it was accrued. Six tax court judgesdissented.

The majority opinion, written by Gale, said the tax court findingin an earlier case involving Tate & Lyle Inc. of Wilmington, Del.,was being overturned because the 3rd U.S. Circuit Court of Appeals inPhiladelphia reversed its ruling allowing the deductions of unpaidinterest.

"We think the decision is wrong," …