In re E. C. Fisher Corp.
| Citation | 229 F. 316 |
| Decision Date | 18 May 1915 |
| Docket Number | 16788. |
| Parties | In re E. C. FISHER CORP. |
| Court | U.S. District Court — District of Massachusetts |
William R. Buckminster, of Boston, Mass., for trustee.
Roger Sherman Hoar, Asst. Atty. Gen., for the Commonwealth of Massachusetts.
Section 64a of the Bankruptcy Act, which makes taxes preferred claims, provides that a trustee shall be credited with the amounts paid therefor upon filing receipts of the proper public officers; and it further provides that 'in case any question arises as to the amount or legality of any such tax, the same shall be heard and determined by the court ' The tax asserted by the public officer and evidenced by his bill would ordinarily represent the final determination of the taxing authority. The power explicitly given to the bankruptcy court to hear and determine 'any question' as to the 'amount or legality' of the tax would seem to imply that it is not bound by the action of the taxing authority, but may decide the question for itself; and the right is not limited by the statute to such questions as the bankrupt might still have raised against the tax at the date of the bankruptcy proceedings.
There are strong reasons why such power and right should have been given to the bankruptcy court. Persons in failing circumstances are apt to be careless about their taxes, and not to take the necessary steps to protect themselves against improper taxation. In the case of corporations, compelled by statute to make a public return of their financial condition there is great temptation to give that return an appearance favorable to the corporation, as was done in this case, in the hope of not impairing its credit. It was eminently just that, when taxes were given priority over other claims general creditors should be protected against the depletion of the debtor's estate by payment of excessive or unjust taxes.
In New Jersey v. Anderson, 203 U.S. 483, 27 Sup.Ct 137, 51 L.Ed. 284, 17 Am.Bankr.Rep. 63, 70, it was the duty of the state board to ascertain and fix the amount of the franchise tax in the cases of corporations which failed to make returns, and the amount fixed by the board became due and payable. The bankrupt corporation there in question made no return. The state board fixed its tax upon the whole authorized capital. In the bankruptcy proceedings the state presented a bill for the taxes so fixed. In fact, only one quarter of the capital...
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In re Lasky
...In re Gustav Schaefer Co., supra; In re Lang Body Co. 6 Cir., 92 F.2d 338, 35 A.B.R.,N.S., 35; In re E. C. Fisher Corp., supra D.C., 229 F. 316." The remaining contention of the petitioners for review is that the State of Alabama and the subordinate taxing units have a lien for taxes, and t......
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In re Raflowitz, 19893.
...by the State law; the Bankruptcy Court took only such evidence as was necessary to correct that error. Likewise in Re E. C. Fisher Corp., D.C., 229 F. 316, 318. There it appeared that the assessment had proceeded upon a mistake of fact resulting from a false tax return for the bankrupt "whi......
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In re Continental Credit Corp., Bankruptcy No. 77 B 1561.
...203 U.S. 483, 27 S.Ct. 137, 51 L.Ed. 284 (1906); In re Thermiodyne Radio Corporation, 26 F.2d 716 (D.Del.1928); In re E.C. Fisher Corp., 229 F. 316 (D.Mass.1915). This power to redetermine the amount of a tax claim existed whether the claim was secured by a lien or not. 3A Collier, supra at......
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...D.C., 25 F.Supp. 709; In re Denver & R. G. W. R. R., D.C., 23 F.Supp. 298; In re Missouri Pac. R. R., D.C., 33 F.Supp. 728. 13 In re Fisher Corp., D.C., 229 F. 316; In re Thermiodyne Radio Corp., D.C., 26 F.2d 716; Henderson County v. Wilkins, 4 Cir., 43 F.2d 670; Dickinson v. Riley, 8 Cir.......