Appeal from the Order of the Board of Finance and Revenue in case of In Re: Appeal of Penn Square Management Corporation, Docket No. R-1257.
Alan I. Baskin, with him Baskin, Mendelsohn & Leisawitz, for appellant.
Robert P. Coyne, Deputy Attorney General, with him Eugene J. Anastasio, Deputy Attorney General, for appellee.
President Judge Bowman and Judges Wilkinson, Jr., Mencer, Rogers, Blatt, DiSalle and MacPhail. Judges Crumlish, Jr. and Craig did not participate. Opinion by President Judge Bowman.
[ 39 Pa. Commw. Page 128]
Penn Square Management Corp. (Penn Corp.) has appealed from an order of the Board of Finance and Revenue (Board) affirming the taxing authorities' settlement of Penn Corp.'s capital stock tax for the year ending December 31, 1973.
During the calendar year 1973 Penn Corp. was engaged in the business of investment adviser for the Penn Square Mutual Fund, an open-end investment trust.
Penn Corp. timely filed its Pennsylvania Corporate Tax Reports reflecting a capital stock tax of six thousand ($6,000.00) dollars, based upon a self-appraised actual value of its capital stock in the amount of six hundred thousand ($600,000.00) dollars. The Department of Revenue reappraised the actual value of
[ 39 Pa. Commw. Page 129]
the capital stock at eight hundred and forty thousand ($840,000.00) dollars, and settled Penn Corp.'s tax liability at eight thousand four hundred ($8,400.00) dollars.
Penn Corp. filed a Petition for Resettlement and when the resettlement was denied sought review by the Board. After hearing, the Board refused the petition and Penn Corp. filed the instant appeal.
An approved bond was filed and hearing had, at which time a partial stipulation of facts was made a part of the record and additional valuation evidence proffered by each party.
To determine the actual value of capital stock upon which the tax is imposed Section 601 of the Tax Reform Code of 1971, Act of March 4, 1971, P.L. 6, as amended, 72 P.S. § 7601, ...