Perfumers Mfg. Corp. v. Commissioner
United States Tax Court
Petitioner's transferor, Pinaud, Inc., transferred its business to Ed. Pinaud under a contract in 1947, providing for the payment of annual royalty to Pinaud, Inc. This contract also provided the cash payment made thereunder in 1947, and the payments made thereafter in discharge of Pinaud, Inc.'s, merchandising obligations were to be a charge against the future royalty payments.
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Petitioner's transferor, Pinaud, Inc., transferred its business to Ed. Pinaud under a contract in 1947, providing for the payment of annual royalty to Pinaud, Inc. This contract also provided the cash payment made thereunder in 1947, and the payments made thereafter in discharge of Pinaud, Inc.'s, merchandising obligations were to be a charge against the future royalty payments. The Commissioner allowed the cash payment in the sum of about $ 52,000 as prepayment of royalty income. No royalty payments were made in the years in question. Held, the payments made by Ed. Pinaud in years prior to…
1Opinion of the Court
Mulroney, Judge:
The respondent determined that the petitioner is liable as a transferee for deficiencies in income and personal holding company taxes of petitioner’s transferor, as follows:
Year
Deficiency
Income tax
Personal holding company surtax
Fiscal year1 ended Mar. 31,1952__ $16.066.14
Fiscal year ended Mar. 31,1953. $5,342.93 12,715.50
Fiscal period Apr. 1, 1953 to Mar. 5, 1954.. 4,518.06 8,760.83
9,860.99 37,542.47 Total.....
Certain royalty payments which were due petitioner’s transferor under a contract were not paid during the years in question. The question is whether transferor,…
2Cases cited2 opinions
- Crossett Timber & Development Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- C. H. Mead Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1934
3Cited by3 opinions
- Arlen v. Comm'rUnited States Tax Court · 1967
- Perfumers Mfg. Corp. v. CommissionerUnited States Tax Court · 1959
- Robbins v. CommissionerUnited States Tax Court · 1967