Scott Electric Co. v. Commonwealth

JIULIANTE, Senior Judge.

Scott Electric Company (Scott) petitions for review of the February 23, 1993 order of the Pennsylvania Board of Finance and Revenue (Board), which denied Scott a refund request for taxes paid on the value of its capital stock. The issue before us is whether an S corporation may assume the tax liability of its shareholders and then deduct that as an expense in calculating its annual net income for capital stock purposes. We conclude that it may not and, therefore, affirm.

Scott Electric is a Pennsylvania corporation with a fiscal year beginning September 1 and ending…