Tide Water Oil Co. v. Commissioner
United States Board of Tax Appeals
1. Where a corporation owns 85 percent of the stock of another corporation, and the remainder is owned by individuals some of whom are also owners of about 3 percent of the stock of the former, and there is no enforceable control of the remainder, the two corporations are not affiliated, within section 240(b)(1), Revenue Act of 1918, since ownership of 85 percent is not ownership of substantially all of the stock. 2. Where 2,000 persons own in the aggregate 97 percent of the…
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1. Where a corporation owns 85 percent of the stock of another corporation, and the remainder is owned by individuals some of whom are also owners of about 3 percent of the stock of the former, and there is no enforceable control of the remainder, the two corporations are not affiliated, within section 240(b)(1), Revenue Act of 1918, since ownership of 85 percent is not ownership of substantially all of the stock. 2. Where 2,000 persons own in the aggregate 97 percent of the stock of one corporation and none of the stock of another corporation, and the former corporation owns 85 percent of…
1Dissent
McMahoN,
dissenting: I do not agree with the result reached by the majority of the Board in this proceeding. Everything that petitioner did or omitted was done or omitted with full knowledge of all of the facts and circumstances, which are set forth in the majority opinion, and it is deemed unnecessary to detail them here. As to some of the vital facts, the petitioner furnished the information to the respondent. Respondent granted petitioner permission to file a consolidated return for 1918 upon the petitioner’s showing that a consolidated return, based on an affiliation, would inure to its…
2Cases cited23 opinions
- Dickerson v. ColgroveSupreme Court of the United States · 1880
- Patterson v. HewittSupreme Court of the United States · 1904
- Penn Mutual Life Insurance v. AustinSupreme Court of the United States · 1898
- Imperator Realty Co. v. . TullNew York Court of Appeals · 1920
- Swain v. SeamansSupreme Court of the United States · 1870
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