Kerry Inv. Co. v. Commissioner
United States Tax Court
The petitioner made interest-free loans to its subsidiary. Some of these loans were outstanding in 1966 and 1967. Acting under sec. 482, I.R.C. 1954, the respondent increased the petitioner's income by 5 percent of such loans and indicated that correlative adjustments would be made in the tax returns of the subsidiary.
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The petitioner made interest-free loans to its subsidiary. Some of these loans were outstanding in 1966 and 1967. Acting under sec. 482, I.R.C. 1954, the respondent increased the petitioner's income by 5 percent of such loans and indicated that correlative adjustments would be made in the tax returns of the subsidiary. Held: (1) The respondent has the power under sec. 482, I.R.C. 1954, to allocate gross income to the parent with respect to loans, the proceeds of which produced gross income in the years in issue; (2) since the respondent determined to make an allocation of income under sec.…
1Opinion of the Court
Simpson, Judge:
The respondent determined a deficiency of $10,058.38 in the petitioner’s Federal income tax for 1966 and a deficiency of $11,826.61 in the petitioner’s Federal income tax for 1967. The only issue for decision is whether, in the circumstances of this case, the respondent was authorized under section 482 of the Internal Revenue Code of 19541 to increase the petitioner’s income inasmuch as it made interest-free loans to its subsidiary.
FINDINGS OP PACT
Some of the facts have been stipulated, and those facts are so found.
The petitioner, Kerry Investment Co., is a Washington…
2Cases cited44 opinions
- Schroeder v. CommissionerUnited States Tax Court · 1963
- Nat Harrison Assoc., Inc. v. CommissionerUnited States Tax Court · 1964
- Courtney v. CommissionerUnited States Tax Court · 1957
- William O'Dwyer and Sloan O'Dwyer v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1959
- Grenada Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1953
39 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
- Brittingham v. CommissionerUnited States Tax Court · 1976
- Latham Park Manor, Inc. v. CommissionerUnited States Tax Court · 1977
- Kahler Corp. v. CommissionerUnited States Tax Court · 1972
- R. T. French Co. v. CommissionerUnited States Tax Court · 1973
27 more not listed; retrieve them via the Exa API.