In re Taxes American Factors Co.

Citations

• 25 Haw. 769
• 1921 Haw. LEXIS 48

Syllabus

<p>Taxation — reduction from, value of assets of corporation when ascertained by market price of its stock.</p> <p>In estimating for taxation purposes the value of the assets of a corporation forming an enterprise for profit, whose stock is quoted on the markét, a small reduction is usually made from the total value of the assets of the company as indicated by the prevailing market price of the stock of the company on the assumption that it is too high because based upon the value of the shares of stock in small lots and that if the whole of the stock or large blocks thereof were put upon the market the price for that reason would be less than the market quotation.</p> <p>Same — reduction from value of nontaxable assets.</p> <p>Where a reduction is allowed upon the total assets of the company in determining their value the same rate of reduction should likewise be allowed upon the nontaxable assets of the company.</p> <p>Same — value of stock in other Hawaiian corporations owned, by the enterprise.</p> <p>In order to ascertain the proper deductions to be made by reason of the shares of stock in other Hawaiian corporations owned by the enterprise the reasonable market value thereof should control instead of the par value or the book or so-called assessed value of the stock.</p> <p>Same — stock held in foreign corporations — exempt from taxation when.</p> <p>Under section 1259 R. L. 1915 holders of shares of stock in corporations are not liable to be assessed in respect to their individual shares or interest in such companies, yet by the provisions of section 1257 R. L. 1915 the word “company” is held to mean only such corporations as are incorporated under the laws of the Territory and foreign corporations carrying on business in the Territory.</p>