H. H. Robertson Co. v. Commissioner
United States Tax Court
1. T, a U.S. corporation, in anticipation of liquidating a wholly owned foreign corporation (R.H.), sought and obtained a ruling from the Commissioner under sec. 367 of the 1954 Code that the liquidation would be nonrecognizable under sec. 332, on condition that all of the earnings and profits of R.H. be distributed as a dividend to T upon liquidation of R.H.
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1. T, a U.S. corporation, in anticipation of liquidating a wholly owned foreign corporation (R.H.), sought and obtained a ruling from the Commissioner under sec. 367 of the 1954 Code that the liquidation would be nonrecognizable under sec. 332, on condition that all of the earnings and profits of R.H. be distributed as a dividend to T upon liquidation of R.H. The liquidation was consummated on Dec. 28, 1965. Prior thereto, on Dec. 22, 1964, R.H. had distributed to T as a dividend-in-kind certain shares of stock in a second-tier subsidiary having a basis of $ 251,650 and a fair market value at…
1Opinion of the Court
OPINION
Eaum, Judge:
1. Earning s and profits of Robertson Holdings. — In planning the liquidation of its wholly owned subsidiary, Eobertson Holdings, in 1965, petitioner desired to take advantage of section 332 (a), I.E.C. 1954, which provides for nonrecognition of gain or loss “on the receipt by a corporation of property distributed in complete liquidation of another corporation.” However, since Eobertson Holdings was a foreign corporation, section 332(a) would not be applicable unless there were prior compliance with section 367, which then3 provided :
SEO. 367. FOREIGN CORPORATIONS.
In…
2Cases cited24 opinions
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- American Chicle Co. v. United StatesSupreme Court of the United States · 1942
- American Mfg. Co. v. CommissionerUnited States Tax Court · 1970
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- Gentsch v. Goodyear Tire & Rubber Co.Court of Appeals for the Sixth Circuit · 1945
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- United States v. Goodyear Tire & Rubber Co.Supreme Court of the United States · 1990
- Dittler Bros., Inc. v. CommissionerUnited States Tax Court · 1979
- Snap-On Tools, Inc. v. United StatesUnited States Court of Claims · 1992
- Gerli & Co. v. CommissionerUnited States Tax Court · 1980
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