Roche's Beach, Inc. v. Commissioner
United States Board of Tax Appeals
A business corporation empowered by its certificate of incorporation to carry on various commercial businesses besides to hold title to property and collect income therefrom, which is not required by its certificate of incorporation to turn over its entire net income to an organization itself exempt from taxation, is held not exempt from taxation under section 103(6) or 103(14) of the Revenue Act of 1928 even though all of its stock is owned by trustees of a fund for the…
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A business corporation empowered by its certificate of incorporation to carry on various commercial businesses besides to hold title to property and collect income therefrom, which is not required by its certificate of incorporation to turn over its entire net income to an organization itself exempt from taxation, is held not exempt from taxation under section 103(6) or 103(14) of the Revenue Act of 1928 even though all of its stock is owned by trustees of a fund for the relief of needy persons and its income is not used for the benefit of any private stockholder or individual.
1Opinion of the Court
*1090OPINION.
Hakron :
No question is raised regarding the nature of the Edward and Ellen Roche Relief Foundation as a charitable organization exempt from taxation. The sole question is whether the petitioner corporation is exempt from taxation within the provisions of either subsection (6) or (14) of section 103 of the Revenue Act of 1928.1
Both subsections (6) and (14) of section 103 limit exemption from taxation to corporations organized exclusively for stated purposes. It is a principal of the law of private corporations that “the particular classification within which a corporation falls depends…
2Cases cited4 opinions
- Trinidad v. Sagrada Orden De Predicadores De La Provincia Del Santisimo Rosario De FilipinasSupreme Court of the United States · 1924
- In Re the Transfer Tax Upon the Estate of De PeysterNew York Court of Appeals · 1914
- In Re the Estate of BeekmanNew York Court of Appeals · 1921
- People Ex Rel. New York & Albany Lighterage Co. v. CantorNew York Court of Appeals · 1924
3Cited by6 opinions
- Veterinary Surgical Consultants, P.C. v. Comm'rUnited States Tax Court · 2001
- C. F. Smith Co. v. CommissionerUnited States Tax Court · 1954
- Riker v. CommissionerUnited States Tax Court · 1955
- Roche's Beach, Inc. v. CommissionerUnited States Board of Tax Appeals · 1937
- Veterinary Surgical Consultants, P.C. v. Comm'rUnited States Tax Court · 2001
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