Canal Navigation & Trading Co. v. Commissioner

For the period from May 17, 1941 to December 31, 1941, taxpayer paid to three of its officers salaries aggregating $10,000, — to its president, Joseph M. Jones, and its vice-president, Thomas L. Jordan, $4,286 each, and to its vice-president, Harry B. Jordan, $1,428. The commissioner approving a total allowance for salaries for these officers of $4,500, disallowed $5,500 with resulting deficiencies in income and excess profits tax liabilities for the year 1941 of $1,438.93 and $5,225.85, respectively, and taxpayer appealed to the Tax Court. That court on review of the whole record determined…