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64 HASKINS & SELLS August Fiction for Fact A RECENT New York decision tends to clarify the atmosphere somewhat with regard to shares of stock without par value. It appears that the State Tax Commission, in an action brought by the Terminal and Town Taxi Corporation, contended that shares of stock without par value should, for purposes of taxation, be valued at $100 a share. Judge Kellogg of the Supreme Court, Appellate Division, decided on July 6, 1922, "the assumption that non-par value stock has a value of $100 per share for purposes of the license tax (section 181) is unwarranted, and the provision that for purposes of the minimum franchise tax (section 214) non-par value stock shall be deemed to have a face value of $100, is unconstitutional." In the case decided, Terminal and Town Taxi Corporation vs. Tax Commission of the State of New York, the plaintiff contended for a value of $8.55 per share instead of $100 per share. The Terminal and Town Taxi Corporation was a foreign corporation doing business within the State of New York. It had an authorized capital stock of 15,000 shares preferred, par value $100, and 23,500 shares of common, without par value. Of the preferred stock, only 6,947 shares at $100 were issued. The amount paid in for these shares was $694,- 700. Of the common stock, 13,837 shares were issued, and the amount received therefor was $117,500, or about $8.55 per share. Although the total paid-in capital was $812,200, the State Tax Commission, in computing both the license tax and the minimum franchise tax, used as a basis in each instance the sum of $2,078,400 as representing the capital of the company employed within the state, and in arriving at the tax the commission considered the common stock as having a value of $100 per share. Mr. Page Lawrence has been appointed by the president of the Kansas City Chamber of Commerce to serve on a committee which will organize a cost accountants' group of the Chamber and plan future activities for the group. We note with pleasure that Mr. A. W. Hauge, of the staff of the Minneapolis Office, has successfully passed the C. P. A. examinations held by the Minnesota State Board of Accountancy in May, 1922. Mr. C. M. Withus of the New York Broad Street staff has been transferred to the Havana Office, effective July 15, 1922. PRESS OF WILLIAM GREEN, NEW YORK
Object Description
Title |
Fiction for fact [News items] |
Author |
Anonymous |
Subject |
Terminal and Town Taxi Corporation Stocks -- New York -- Accounting |
Personal Name |
Lawrence, Page Hauge, Arthur W. Withus, C. M. |
Office/Department |
Haskins & Sells. Kansas City Office Haskins & Sells. Minneapolis Office Haskins & Sells. New York Office Haskins & Sells. Havana Office |
Citation |
Haskins & Sells Bulletin, Vol. 05, no. 08 (1922 August 15), p. 64 |
Date-Issued | 1922 |
Source | Originally published by: Haskins & Sells |
Type | Text |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Libraries. Accounting Collection |
Date-Digitally Created | 2009 |
Identifier | HS Bulletin 5-p64 |