We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. These documents are classified as Revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.
Q&A with the Pennsylvania Department of Revenue
Scenario: A savings bank that had been filing MTIT reports merged into an existing national bank that had been filing shares tax reports.
In the 2010 Q&A session, a question was posed regarding the calculation of shares value for Bank Shares Tax purposes when a savings bank that had been filing MTIT reports was converted to a national bank and merged into an existing national bank that had been filing Shares Tax reports during the second quarter of 2010. The Department responded that the shares value of the surviving merged bank would include the historic capital value of both the surviving national bank and the merged/converted savings bank for the prior 5 years as the savings bank would not be considered a new entity at the time of its conversion and merger into a national bank.
1) Would the savings bank be required to file a MTIT report for 2010?
2) If so, would the period covered by MTIT be the full year or only from the beginning of the year up to the time of its conversion/merger into a national bank?
3) Assuming the savings bank merely converted into a national bank but did not merge into another bank, would its 2011 Shares Tax be prorated to reflect the number of days from the 2010 conversion to the end of 2010?
2) The savings bank must file a MTIT report for the period up to the date of the conversion.
3) There is no authority to prorate the Bank Shares Tax.