Triumph Hosiery Mills, Inc. v. Commonwealth

OPINION OF THE COURT

JONES, Chief Justice.

The Pennsylvania corporate net income tax, Act of March 4, 1971, P.L. 74, No. 2, art. IV, § 401 et seq., as amended, 72 P.S. § 7401 et seq., is imposed on corporations transacting business within the Commonwealth. It is levied for the privilege of doing business in Pennsylvania. Turco Paint & Varnish Co. v. Kalodner, 320 Pa. 421, 184 A. 37 (1936). The tax base, called “taxable income,” for computation of the tax is, essentially, federal taxable income to which the taxpayer “adds-back” any deduction for the Pennsylvania corporate net income tax taken on…