Freedman v. Philadelphia Tax Review Board

Dissenting Opinion by

Mr. Justice Cohen:

The sole issue involved in this matter is whether a limited partner’s share of income earned by a partnership is subject to Philadelphia Net Profits Tax. The Tax Review Board and the trial court held this to be earned income and therefore taxable under the Philadelphia Code, §19-501 et seq. The Superior Court reversed.

Our Court now adopts the Superior Court’s determination and analogizes the income of a limited partnership allocated to a partner to dividends of a corporation. I think our Court is in error in so doing. A corporation pays a tax on its…