Appeal from the Order of the Board of Finance and Revenue in case of Petition of Advance-Wilson Industries, Inc. Appeal transferred from the Court of Common Pleas of Dauphin County to the Commonwealth Court of Pennsylvania, September 1, 1970.
Bernard Eisen, with him Berkman, Ruslander, Pohl, Lieber & Engel, for appellant.
Edward T. Baker, Deputy Attorney General, for appellee.
President Judge Bowman and Judges Crumlish, Jr., Kramer, Wilkinson, Jr., Mencer, Rogers and Blatt. Opinion by Judge Crumlish, Jr.
This is an appeal from a decision of the Board of Finance and Revenue sustaining a settlement of Corporate Net Income Tax made against appellant for the fiscal year ended December 31, 1966 by the Department of Revenue and the Department of Auditor General. Appellant, a Delaware corporation authorized to do business in Pennsylvania, filed its Corporate Net Income Tax Report for the fiscal year ended December 31, 1966 admitting tax due in the amount of $11,850.38. The Department of Revenue settled and the Department of Auditor General approved such settlement which determined the tax due as $24,408.43. In arriving at this figure appellant's entire taxable income as reported for Federal Income Tax purposes was used which included income from its operations outside of Pennsylvania.
Appellant filed a Petition for Resettlement and subsequently a Petition for Review with the Board of Finance and Revenue. Both of those petitions were refused and the appeal now lies with this Court.*fn1 An agreement to try without a jury and a partial stipulation of facts was entered into and additional testimony was adduced at an evidentiary hearing before this Court.
(1) Appellant is a holding company which has two operating divisions, Keystone Ridgeway Company and Electrolyzing Company.
(2) The Keystone Ridgeway Company division operates three plants in Pennsylvania which are engaged in the manufacture and sale of ceramic tiles used in building construction, bathrooms and any place that might require flooring of a waterproof nature.
(3) The Certificate of Authority issued by the Commonwealth of Pennsylvania to the appellant as a foreign corporation permits appellant "to purchase, lease, produce, manufacture, sell and generally deal in and with building materials of all kinds."
(4) The Electrolyzing Company division maintains places of business in Illinois and Rhode Island and conducts business throughout the United States. The business of this division is to receive machines or machine parts, equipment and tools which are subject to wear abrasion and, by the electrolyzing process, plate the parts in order to increase their useful longevity.
(5) The Certificate of Authority issued to appellant as a foreign corporation by the State of Illinois states the purposes for the transaction of business in the state to be: "To engage in the business of manufacturing, exploiting, producing, assembling, maintaining, processing, cleaning, milling, machining, repairing, improving, procuring, purchasing, disposing, selling and distributing of machines, equipment and tools of every kind and description and other goods, wares and products."
(6) There is no money flow, no transfer of working capital, no intradivision sales or purchases or no accounting transactions ...