Swiss Oil Corp. v. Commissioner
United States Board of Tax Appeals
1. The taxpayer had a contract with the stockholders of a corporation whereby the taxpayer had a right to purchase all of the stock of the corporation, subject to the right of the stockholders to withdraw some of the assets of the corporation. The taxpayer made an initial payment under this contract.
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1. The taxpayer had a contract with the stockholders of a corporation whereby the taxpayer had a right to purchase all of the stock of the corporation, subject to the right of the stockholders to withdraw some of the assets of the corporation. The taxpayer made an initial payment under this contract. The stock was then placed in escrow until the corporation, under the management of the vendor stockholders, had earned and paid as a dividend to the taxpayer a stated amount, which the latter paid over to the vendors as a second payment. The stock was then delivered to the taxpayer, which…
1Opinion of the Court
*783OPINION.
Murdock:
The affirmative issue raised by the Commissioner will be discussed first. The parties have vigorously contested this point in able and extensive briefs. Section 201(c) of the Revenue Act of 1926 provides that “ amounts distributed in complete liquidation of a corporation shall be treated as in full payment in exchange for *784the stock ” and “ the gain or loss to the distributee resulting from such exchange shall be determined under section 202, but shall be recognized only to the extent provided in section 203.” None of the exceptions contained in section 203 applies. The general…
2Cases cited3 opinions
- United States v. PhellisSupreme Court of the United States · 1921
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Weiss v. StearnSupreme Court of the United States · 1924
3Cited by8 opinions
- Palmer v. CommissionerUnited States Tax Court · 1974
- Massaglia v. CommissionerUnited States Tax Court · 1959
- Maine Steel, Inc. v. United StatesDistrict Court, D. Maine · 1959
- Lashar v. CommissionerUnited States Board of Tax Appeals · 1936
- Massaglia v. CommissionerUnited States Tax Court · 1959
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