R. T. French Co. v. Commissioner
United States Tax Court
1. Held: Royalty payments by T corp. to an affiliated foreign company were made pursuant to licensing arrangements such as would have been entered into by parties dealing at arm's length.
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1. Held: Royalty payments by T corp. to an affiliated foreign company were made pursuant to licensing arrangements such as would have been entered into by parties dealing at arm's length. The royalty expenses were therefore deductible under sec. 162(a) of the 1954 Code, and the Commissioner's disallowance of such deductions under the claimed authority of sec. 482 of the Code was improper. 2. T concedes that income must be imputed to it by reason of the free use by its foreign "brother-sister" affiliates of certain intangible assets owned by T. T will never receive actual payment from the…
1Opinion of the Court
The Commissioner determined deficiencies in petitioner’s income tax in the amounts of $60,699.15 and $70,594.59 for the taxable years ending December 28, 1963, and January 2, 1965, respectively, and deficiencies in petitioner’s withholding (section 1442(a)) tax in the amounts of $5,836.50 and $7,059.46 for the calendar years 1963 and 1964, respectively. The only issues remaining for decision are: (1) whether the Commissioner properly allocated income to petitioner, pursuant to section 482 of the 1954 Code, by reason of its participation in certain licensing arrangements with affiliated…
2Cases cited40 opinions
- Brulotte v. Thys Co.Supreme Court of the United States · 1964
- Grenada Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1953
- Ach v. CommissionerUnited States Tax Court · 1964
- Estate of Beck v. Comm'rUnited States Tax Court · 1971
- Rushing v. CommissionerUnited States Tax Court · 1969
35 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1991
- Bausch & Lomb Incorporated and Consolidated Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1991
- Bausch & Lomb, Inc. v. CommissionerUnited States Tax Court · 1989
- Collins Electrical Co. v. CommissionerUnited States Tax Court · 1977
- Martin v. CommissionerUnited States Tax Court · 1979
18 more not listed; retrieve them via the Exa API.