Commonwealth v. Roxford Knitting Co.

Citations

• 268 Pa. 266
• 110 A. 720
• 1920 Pa. LEXIS 673

Syllabus

<p>Taxation — State—Corporate loans — Act of June 17, 1918, section 17, P. L. 507, 516 — Indebtedness—Promissory notes — Payable to bcmhing copartnership — “Certificates of indebtedness” — Duty to colled tax — Neglect—Liability.</p> <p>1. A corporation is not taxable for state purposes on an indebtedness represented by promissory notes, payable to a banking co-partnership, six months after date, under section 17 of Act of June 17, 1913, P. L. 507, 516.</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 the tax by deducting the amount thereof from the interest on the indebtedness when paid to the holders thereof.</p> <p>3. Section 17 of the Act of 1913 imposes no duty on the corporation to collect a tax on an indebtedness represented by promissory notes payable to a bank inasmuch as such obligations are taxable under section 1 of the same act for county purposes, and the tax thereon is not collectible by the corporation but by the local authorities.</p>