47 A.2d 272 | Pa. | 1946
Argued April 15, 1946.
The questions involved in these cases have been considered at length in Fidelity-Philadelphia Trust Company Tax Case,
For the reasons stated in the Fidelity-Philadelphia TrustCompany case we are of opinion that appellant is to be regarded as a domestic corporation and that therefore its liability for the corporate loans tax is not affected by the fact that it does not have a treasurer resident within the Commonwealth.
Some of appellant's bonds are held by Pennsylvania savings institutions having no capital stock, but they contain covenants that the interest will be paid without any deduction for taxes. The Act of May 18, 1937, P. L. 633, section 3, while providing that the personal property tax is not applicable to such savings institutions, further provides that if a corporation has agreed to issue its bonds free from the tax it is not relieved from paying the tax on its bonds held or owned by such an institution, — a provision which harks back to the Act of May 1, 1909, P. L. 298. Appellant contends that this constitutes an unconstitutional discrimination between bonds containing and those not containing a tax-free covenant, but provisions of this type were considered and upheld inCommonwealth v. Lehigh Valley R. R. Co.,
Judgment affirmed. *391