<p>Michigan Supreme Court Allows Bad Debt Deductions for Balances on Defaulted Installment Contracts</p>

Michigan Supreme Court Allows Bad Debt Deductions for Balances on Defaulted Installment Contracts

Michigan Supreme Court

The Michigan Supreme Court held that financial services companies are entitled to a sales tax refund for outstanding balances on repossessed vehicles written off as bad debts, reversing a Michigan Court of Appeals decision, but affirmed the denial of the refunds on the grounds that the companies had not submitted the required forms to support their claims.

<p>The Michigan Supreme Court held that financial services companies are entitled to a sales tax refund for outstanding balances on repossessed vehicles written off as bad debts, reversing a Michigan Court of Appeals decision, but affirmed the denial of the refunds on the grounds that the companies had not submitted the required forms to support their claims.</p>