(A) This rule first applies for tax year 1990. It prescribes those taxes that are excludable in computing the corporate franchise tax under the net worth basis. Rule 5703-5-01 of the Administrative Code defines terms used in this rule.
(B) For purposes of determining the value of a corporation's issued and outstanding shares of stock under the net worth basis, taxes reflected on the books of the corporation may be excluded in accordance with division (A)(2) of section 5733.05 of the Revised Code and "Kroger Co. v. Bowers" (1965), 3 Ohio St. 2d 76, if both of the following conditions are met:
(1) The taxes were occasioned by or accrued because of the activities or operations of the corporation for or during the taxable year.
(2) The taxes are due and payable during the tax year.
(C) Taxes not excludable under paragraph (B) of this rule shall not be excluded as "other valuation reserves" pursuant to division (A)(1) of section 5733.05 of the Revised Code. The term "other valuation reserves" applies solely to those reserves that are regularly and consistently employed by the corporation in the ordinary course of its business and that are recognized and regarded as part of the corporation's accounting records.