Callery's Appeal

Citations

• 272 Pa. 255
• 116 A. 222
• 1922 Pa. LEXIS 815

Syllabus

<p>Taxation — Personal property tax — Corporations—Tax on capital stock — Foreign corporations — Holding companies — Registration— Doing business — Words and phrases — Tangible assets — -Assessment by auditor general — Act of June 17, 1918, P. L. 507, and July 15, 1919, P. L. 91¡-8 — Failure to make return — Penalty—Remission,</p> <p>1. The shares of stock of a foreign corporation owned by a resident of Pennsylvania is subject to the personal property tax for county purposes under the Act of June 17, 1913, P. L. 507, where it appears that although the corporation is registered to do business in the State, it has no tangible property there subject to the capital stock tax under the Act of July 15,1919, P. L. 948.</p> <p>2. In such case it is immaterial that the corporation owns the entire capital stock of another corporation which has extensive holdings of property in this State, and is engaged extensively in business herein; the shares of stock of the subsidiary company are not tangible assets.</p> <p>3. Kor is it material that the auditor general has assessed and such foreign corporation has paid the capital stock tax under the Act of July 15, 1919, P. L. 948, if it appears that the corporation was, in fact, not liable for such tax. The auditor general’s report in such ease is not conclusive upon the county authorities.</p> <p>4. Value, for purposes of capital stock taxation, comes through property, and if the corporation is doing business here, with no property or capital located or used in the Commonwealth assessable for state purposes, its stock has no value upon which a capital-stock tax may be based.</p> <p>5. Eegistration in the nature of a license, or a right to do business, has no taxable value.</p> <p>6. Acts in conformity to, and in furtherance of, the sole business purposes of a going concern, represent “doing business,” but such acts alone do not constitute “doing business in and liable to taxation,” within the meaning of the statute.</p> <p>7. To justi