Bhada v. Commissioner
United States Tax Court
Ps were shareholders of M. M was a domestic corporation, and MI was its wholly-owned foreign subsidiary. The boards of directors of M and MI decided to take advantage of the lower income tax rates available in the areas outside the United States in which MI operated by changing the corporate structure so that MI would become the parent corporation and M the subsidiary.
Read the full summary
Ps were shareholders of M. M was a domestic corporation, and MI was its wholly-owned foreign subsidiary. The boards of directors of M and MI decided to take advantage of the lower income tax rates available in the areas outside the United States in which MI operated by changing the corporate structure so that MI would become the parent corporation and M the subsidiary. To effect the change, MI gave 30 million shares of its common stock plus $ 0.35 per share (a total of $ 10,500,000) to the shareholders of M, including Ps, in return for 30 million shares of the common stock of M. After the…
1Opinion of the Court
OPINION
NlMS, Judge:
This matter is before the Court on the parties’ cross-motions for partial summary judgment pursuant to Rule 121.1 The parties have complied with the requirements of Rule 121, and we find that a partial summary judgment is appropriate in this case. The issue raised by each motion is whether the shares of International common stock received by petitioners in exchange for McDermott common stock constitute “property” within the meaning of section 304(a)(2)(A).
All the facts have been agreed upon (stipulated) for purposes of these Rule 121 motions.
Petitioners Rohinton and…
2Cases cited18 opinions
- Crooks v. HarrelsonSupreme Court of the United States · 1930
- Manhattan General Equipment Co. v. Commissioner of Internal RevenueSupreme Court of the United States · 1936
- Commissioner v. AckerSupreme Court of the United States · 1959
- United States v. CalamaroSupreme Court of the United States · 1957
- Lang v. CommissionerSupreme Court of the United States · 1933
13 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Pepcol Mfg. Co. v. CommissionerUnited States Tax Court · 1992
- Rohinton K. Bhada, Patricia A. Bhada v. Commissioner, Internal Revenue ServiceCourt of Appeals for the Sixth Circuit · 1989
- Combrink v. Comm'rUnited States Tax Court · 2001
- Bhada v. CommissionerUnited States Tax Court · 1987
- Combrink v. Comm'rUnited States Tax Court · 2001
2 more not listed; retrieve them via the Exa API.