Commonwealth v. Hazelwood Savings & Trust Co.

Citations

• 271 Pa. 375
• 114 A. 368
• 1921 Pa. LEXIS 512

Syllabus

<p>Taxation — Corporations — Tax on capital stock — Valuation— Nontaxable secmities — Act of June 18, 1907.</p> <p>1. Under the Act of June 13, 1907, P. L. 640, which declares that the value of the capital stock of a corporation shall be ascertained for tax purposes “by adding together so much of the capital stock paid in, the surplus and undivided profits, as is not invested in shares of stock of corporations^! liable to pay a capital stock tax, and dividing this amount by the number of shares, that which is to be deducted is not all the nontaxable assets held by the company, but only so much thereof as was purchased out of the capital stock paid in, the surplus and undivided profits.</p> <p>2. Although a company may purchase its nontaxable securities from any fund it chooses, yet if it fails to prove purchase of such securities out of capital stock account, the Commonwealth may apportion the value of the securities between “the capital stock paid in, the surplus and undivided profits” and the other assets of the company, it appearing as far as shown that the price of the securities came from both funds.</p>