Carborundum Co. v. Commissioner
United States Tax Court
1. Petitioner received from its Canadian subsidiary dividend distributions of $ 337,841.25, $ 108,109.20, and $ 108,109.20 on July 13, July 16, and September 30, 1940, or an aggregate of $ 554,059.65. The amount of net abnormal income of petitioner for 1940 resulting from these distributions was $ 427,497.15. The net earnings of the subsidiary after taxes for 1940 were $ 470,975.16. Held, in the absence of proof that the earnings for 1940 of the Canadian subsidiary at the…
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1. Petitioner received from its Canadian subsidiary dividend distributions of $ 337,841.25, $ 108,109.20, and $ 108,109.20 on July 13, July 16, and September 30, 1940, or an aggregate of $ 554,059.65. The amount of net abnormal income of petitioner for 1940 resulting from these distributions was $ 427,497.15. The net earnings of the subsidiary after taxes for 1940 were $ 470,975.16. Held, in the absence of proof that the earnings for 1940 of the Canadian subsidiary at the time of the dividend distributions were less than the amounts distributed by it, petitioner is not entitled to an…
1Opinion of the Court
The Carborundum Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Carborundum Co. v. Commissioner
Docket No. 12960
United States Tax Court
12 T.C. 287; 1949 U.S. Tax Ct. LEXIS 259;
March 4, 1949, Promulgated
Decision will be entered under Rule 50.
1. Petitioner received from its Canadian subsidiary dividend distributions of $ 337,841.25, $ 108,109.20, and $ 108,109.20 on July 13, July 16, and September 30, 1940, or an aggregate of $ 554,059.65. The amount of net abnormal income of petitioner for 1940 resulting from these distributions was $ 427,497.15. The net earnings of the…
Also in this document: Dissent.
2Cases cited5 opinions
- Edwards v. DouglasSupreme Court of the United States · 1925
- Arrow-Hart & Hegeman Electric Co. v. CommissionerUnited States Tax Court · 1946
- Surface Combustion Corp. v. CommissionerUnited States Tax Court · 1947
- Pacific Gas & Electric Co. v. CommissionerUnited States Tax Court · 1946
- Carborundum Co. v. CommissionerUnited States Tax Court · 1949