Marc's Big Boy-Prospect, Inc. v. Commissioner
United States Tax Court
WBB obtained a restaurant franchise for the State of Wisconsin. It set up and, in one case, acquired from its shareholders, wholly owned subsidiaries each for the purpose of operating restaurants under a subfranchise agreement. WBB also set up two corporations as commissaries to serve the restaurants. Each subsidiary was so completely managed and controlled by WBB that WBB, in effect, earned the income arising from their operation.
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WBB obtained a restaurant franchise for the State of Wisconsin. It set up and, in one case, acquired from its shareholders, wholly owned subsidiaries each for the purpose of operating restaurants under a subfranchise agreement. WBB also set up two corporations as commissaries to serve the restaurants. Each subsidiary was so completely managed and controlled by WBB that WBB, in effect, earned the income arising from their operation. Held, the Commissioner's allocations to WBB of all the gross income and deductions of the subsidiaries under sec. 482 were not arbitrary, capricious, or…
1Opinion of the Court
Marc's Big Boy-Prospect, Inc., et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Marc's Big Boy-Prospect, Inc. v. Commissioner
Docket Nos. 299-67 -- 308-67
United States Tax Court
52 T.C. 1073; 1969 U.S. Tax Ct. LEXIS 52;
September 29, 1969, Filed
Decision will be entered for the respondent in docket No. 305-67.
Decisions will be entered under Rule 50 in all other dockets.
WBB obtained a restaurant franchise for the State of Wisconsin. It set up and, in one case, acquired from its shareholders, wholly owned subsidiaries each for the purpose of operating restaurants under a…
2Cases cited33 opinions
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- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Burnet v. HoustonSupreme Court of the United States · 1931
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
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