220 Mass. 409 | Mass. | 1915
These petitions relate to the method of assessing upon the savings departments of trust companies the excise tax required by law. The conduct of savings departments by trust companies is regulated by St. 1908, c. 520. All deposits made in such departments with the accounts relating thereto must be
It is obvious that difficulty arises in applying the same law to dissimilar objects of taxation. No trouble is met in applying the law to savings banks. It was designed for them. But the savings departments of trust companies are unlike savings banks in material respects. The entire body of deposits in the savings bank
The rational interpretation of the savings bank tax law as applied to the deposits in the savings departments of trust companies is to prorate the deductions allowed between the portion of their deposits which is subject to the excise and that portion
It follows from what has been said that St. 1908, c. 520, neither recognizes nor authorizes, but in substance inhibits, the segregation by savings departments of trust companies of deposits in excess of $1,000 each from those of that sum and under, and hence that such segregation of investments cannot be made. The Dorchester Trust Company, which as a matter of bookkeeping has made such division, stands on the same footing as the others in this regard.
No mention was made in the return of the Old Colony Trust Company and of the Dorchester Trust Company of the total deposits in their several savings departments, but the return gave only the total of those deposits each of $1,000 and less and omitted any reference to the total of those over $1,000 each. These returns were made under oath by the proper officers. Thereafter the tax commissioner on inquiry received a letter from each company, not under oath, stating the amount of the deposits of over $1,000 in the savings department, and used this information in dividing proportionally the tax exempt investments between the amounts of all deposits over $1,000 and all other deposits. It is contended by the petitioners that the only source of information which the tax commissioner lawfully may use in assessing this excise tax is the sworn return. They rely upon cases like Hall v. County Commissioners, 10 Allen, 100, Chase v. Boston, 193 Mass. 522, and National Fireproofing Co. v. Revere, 217 Mass. 63, in support of this contention. Those cases arose under statutes similar in terms to St. 1909, c. 490, Part I, § 46, which expressly provides that the return for local taxation shall be accepted as true under certain conditions. No similar provision is to be found in the sections of the excise tax return law here material. There is nothing to prevent the tax commissioner from ascertaining the truth by inquiry from the responsible officers of the trust companies. Moreover, the information thus acquired by him in the cases at bar was not in contradiction but in explanation of the return already filed. No contention is made that the facts were not ascertained and used in making the assessment, nor that the result was not true, if the basis of assessment was sound. There was no invalidity in the manner of assessing the excise.
So ordered.