TAXATION-FOREIGN CORPORATION TAXED ON BUSINESS OF SUBSIDIARIES

Authors

Abstract

A foreign corporation doing business in Massachusetts owned the entire capital stock of two other foreign corporations also engaged in business in Massachusetts. The certificates were kept in Massachusetts. A Massachusetts statute taxed foreign corporations upon business done in the state by taxing such proportion of the corporate excess as the value of the assets employed in business in the commonwealth bore to the value of the total assets of the corporation. The capital stock of the subsidiaries was included in the assets employed in business in Massachusetts. The corporation sued to recover the tax resulting from the increased ratio claiming the stock should not have been included among its assets in determining the proportion of corporate excess taxable in Massachusetts. The subsidiaries also were each taxed on their corporate excess. Held, that the tax was properly assessed and constitutional. National Leather Co. v. Com. (Mass. 1926) 152 N. E. 916.

Recommended Citation

TAXATION-FOREIGN CORPORATION TAXED ON BUSINESS OF SUBSIDIARIES, 25 Mich. L. Rev. 278 (1928).
Available at: https://repository.law.umich.edu/mlr/vol25/iss3/7