of a United States court shall be subject to all Federal, State and local taxes applicable to such business to the same extent as if it were conducted by an individual or corporation.' (Emphasis by the court.) This provision is consistent with Section 11 of the Corporation Business Tax Act of New Jersey, R.S. 54:10A-11, N.J.S.A. 54:10A-11. It would seem obvious that the trustee may not assert an exemption from liability under either the Federal or State Law.
The decision of the Supreme Court in the case of New York v. Saper, supra, was clearly limited to the question there presented, to wit, the liability of the trustee for post-bankruptcy interest on tax claims. The Court held that Section 57, sub. j, of the Bankruptcy Act, 11 U.S.C.A. § 93, sub. j, prohibited the allowance of only such interest. We direct our attention to the earlier opinion of the Supreme Court in the case of Boteler v. Ingels, 308 U.S. 57, 59 and 60, 60 S. Ct. 29, 31, 84 L. Ed. 78, in which it was held: 'Section 57, sub. j, prohibits allowance of a tax penalty against the bankrupt estate only if incurred by the bankrupt before bankruptcy by reason of his own delinquency. After bankruptcy, it does not purport to exempt the trustee from the operation of State laws, or to relieve the estate from liability for the trustee's delinquencies.' (Emphasis by the court.) The decisions in the cited cases are reconcilable, and it is our opinion that the principles of the latter are applicable here. latter are applicable here.
We are of the opinion that where, as here, the business of a corporate debtor is conducted by the trustee, the corporate franchise tax imposed by law is an administration expense for which the trustee is liable. 28 U.S.C.A. § 960; People of State of Michigan v. Michigan Trust Co., 286 U.S. 334, 52 S. Ct. 512, 76 L. Ed. 1136; In re Pressed Steel Car Co. of New Jersey, 3 Cir., 100 F.2d 147; In re Chicago & N.W. Ry. Co., 7 Cir., 119 F.2d 971; In re Fonda, J. & G.R. Co., 2 Cir., 126 F.2d 604, certiorari denied Zimmer v. New York State Tax Commission, 316 U.S. 701, 62 S. Ct. 1300, 86 L. Ed. 1769. He is liable not only for the principal amount but also the interest thereon where, under the provisions of the local law, such interest is assessable against the taxpayer upon his failure to pay the tax within the time prescribed. Ibid.
The claim of the State of New Jersey will be allowed.
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