f for any taxable year beginning after December 31, 1954, the taxpayer has a net operating loss, such net operating loss shall be a net operating loss carry-back for the preceding taxable year.
(B) Net operating loss carry-over. If for any taxable year beginning after December 31, 1953, the taxpayer has a net operating loss, such net operating loss shall be a net operating loss carry-over for each of the five succeeding taxable years, except that the carry-over in the case of each such succeeding taxable year (other than the first succeeding taxable year) shall be the excess, if any, of the amount of such net operating loss over the sum of the net income for each of the intervening years computed:" (Emphasis supplied)
The substance of A.R.S. § 43-123, subsec. s is comparable to § 122 of the 1939 Internal Revenue Code with reference to the problem presented. Our Supreme Court has stated, where the Arizona Income Tax Act is similar to the Federal Income Tax Act, the decisions of the federal courts will be very persuasive in determining how the Arizona Income Tax Act should be construed. Arizona State Tax Commission v. Kieckhefer, 67 Ariz. 102, 191 P.2d 729 (1948);[1] Arizona State Tax Commission v. Fagerberg, 59 Ariz. 29, 122 P.2d 212 (1942).
We are unable to find support in the record for the trial court's determination that a "de facto" merger existed as of July 18, 1963, between New Cascade and Oliver's thus entitling Oliver's to the loss carry-over deduction. We find no Arizona authority dealing with de facto mergers, although Arizona recognizes the doctrine of "de facto" corporations in general. Rice v. Sanger Bros., 27 Ariz. 15, 229 P. 397 (1924); Sawyer v. Pabst Brewing Co., 22 Ariz. 384, 198 P. 118 (1921). It has been held that if there is legislative authority for a consolidation, an attempt in good faith to consolidate under the statutes, a colorable compliance with the statute, and the exercise or assumption of powers as a consolidated corporation, consolidation de facto occurs. Provident Security *445