CCA, Inc. v. Commissioner
United States Tax Court
P corporation established S as a wholly owned foreign subsidiary. Upon passage of the Revenue Act of 1962, preferred stock of S was issued to non-United States shareholders possessing 50 percent of the voting power. There were no substantial restrictions placed on the preferred stock and representatives on the board of directors had significant powers which could be utilized to alter the course of events of S. Held, S is not a controlled foreign corporation.
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P corporation established S as a wholly owned foreign subsidiary. Upon passage of the Revenue Act of 1962, preferred stock of S was issued to non-United States shareholders possessing 50 percent of the voting power. There were no substantial restrictions placed on the preferred stock and representatives on the board of directors had significant powers which could be utilized to alter the course of events of S. Held, S is not a controlled foreign corporation. Sec. 957(a), I.R.C. 1954.
1Opinion of the Court
Wiles, Judge:
Respondent determined that petitioner Controls Co. of America1 (hereinafter referred to as new CCA) is liable as the transferee of the assets of CCA, Inc., for the years and in the amounts as follows:
Year Deficiency
12/31/64_ $312,459.09
12/31/65__ 320,728.34
Respondent also determined that petitioner Singer Co. is liable as successor by merger to General Precision Equipment Corp. (hereinafter referred to as GPE) for deficiencies for the years and in the amounts as follows:
Year Deficiency
12/31/66_ $254,231.88
1/1/68 to 7/11/68_ 2 4,398.19
Several issues have been settled by the…
2Cases cited5 opinions
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- Garlock, Inc. v. CommissionerUnited States Tax Court · 1972
- Kraus v. CommissionerUnited States Tax Court · 1973
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- Hans P. Kraus and Hanni Z. Kraus v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1974
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