Oswego Falls Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner, during the taxable year 1936, was obligated under a mortgage indenture securing its bond issue to pay or declare no dividends on its second preferred or common stock if such action would reduce its net current assets below $1,000,000. Held, that payment of cash dividends in excess of the amount actually paid by petitioner in 1936 would have so reduced the net current assets in violation of the mortgage indenture; held, further, that under the established…
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1. Petitioner, during the taxable year 1936, was obligated under a mortgage indenture securing its bond issue to pay or declare no dividends on its second preferred or common stock if such action would reduce its net current assets below $1,000,000. Held, that payment of cash dividends in excess of the amount actually paid by petitioner in 1936 would have so reduced the net current assets in violation of the mortgage indenture; held, further, that under the established facts, petitioner could have paid common stock dividends, only, on its outstanding common stock which would not have…
1Opinion of the Court
OSWEGO FALLS CORPORATION, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Oswego Falls Corp. v. Commissioner
Docket No. 102164.
United States Board of Tax Appeals
46 B.T.A. 801; 1942 BTA LEXIS 812;
March 31, 1942, Promulgated
1. Petitioner, during the taxable year 1936, was obligated under a mortgage indenture securing its bond issue to pay or declare no dividends on its second preferred or common stock if such action would reduce its net current assets below $1,000,000. Held, that payment of cash dividends in excess of the amount actually paid by petitioner in 1936 would have so…
2Cases cited3 opinions
- Columbia River Paper Mills v. CommissionerUnited States Board of Tax Appeals · 1941
- Paraport Theatre Leasing Corp. v. CommissionerUnited States Board of Tax Appeals · 1941
- Oswego Falls Corp. v. CommissionerUnited States Board of Tax Appeals · 1942