R. H. Bouligny, Inc. v. Commissioner
United States Board of Tax Appeals
On December 28, 1936, petitioner corporation declared a dividend and immediately credited it to the accounts of its two stockholders, who thereupon had the unrestricted right and power to withdraw the same.
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On December 28, 1936, petitioner corporation declared a dividend and immediately credited it to the accounts of its two stockholders, who thereupon had the unrestricted right and power to withdraw the same. On December 30, 1936, the petitioner, for the first time, ascertained, that, by reason of the liability to its stockholders for the dividends, its credit standing had been impaired, and it thereupon levied an assessment upon the stock of $40 per share, to be contributed by the stockholders of petitioner as paid-in surplus, and petitioner thereupon charged the assessment to the personal…
1Opinion of the Court
*458OPINION.
Tyson:
The question presented for decision is whether the Commissioner erred in failing to allow a dividends paid credit of $11,500 in computing the petitioner’s surtax on undistributed profits for the year 1936. The dividends paid credit allowed to corporations by section 27 of the Revenue Act of 1936 is a factor in the computation of the undistributed net income of the corporation on which the *459surtax is imposed, section 14 (a) (2), and (b); and it “shall be the amount of dividends paid during the taxable year”, section 27 (a).
The point of difference between the parties is whether the…
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- Royal Mfg. Co. v. CommissionerCourt of Appeals for the Third Circuit · 1943
- Bay Ridge Operating Co. v. CommissionerUnited States Tax Court · 1970
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