Commonwealth v. Lancaster Electric Light, Heat & Power Co.

Citations

• 268 Pa. 290
• 110 A. 724
• 1920 Pa. LEXIS 678

Syllabus

<p>Taxation — State—Corpomte indebtedness — Loan tax — Act of June 17,1918, section 17, P. L. 507, 516 — Boole statement — Duty to ■collect tax — Neglect—Liability.</p> <p>1. A corporation is not taxable for state purposes on an indebtedness not represented by any obligation given by it to the person to whom the indebtedness is due, but appearing only in a statement contained in the company’s books as cash advanced to it, under section 17, Act of June 17, 1913, P. L. 507, 516, imposing a tax on corporate “scrip, bonds or certificates of indebtedness,” inasmuch as section 1 of the same act imposes a tax for county purposes generally on indebtedness howsoever it may be evidenced, except such loans as are made taxable by section 17 of the act.</p> <p>2. The liability of a corporation for the tax imposed under section 17 of the Act of 1913, arises out of its failure or neglect to assess and collect it from the holder of the indebtedness.</p> <p>3. Section 17 of the Act of 1913, imposes no duty on a corporation to collect a tax on an indebtedness not represented by any obligation given by it to the person to whom the indebtedness is due.</p>