Saigh v. Commissioner
United States Tax Court
1. Where an individual (agent) acts on behalf of a corporation in the acquisition of another corporation, the acquiring corporation (principal) is a "shareholder" for the purposes of section 115(a), I.R.C. 1939, and where the acquired corporation transfers funds to the acquiring corporation under circumstances not indicating an intention to repay or to be repaid, held, the transfer was a dividend to the extent of earnings and profits of the acquired corporation within the…
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1. Where an individual (agent) acts on behalf of a corporation in the acquisition of another corporation, the acquiring corporation (principal) is a "shareholder" for the purposes of section 115(a), I.R.C. 1939, and where the acquired corporation transfers funds to the acquiring corporation under circumstances not indicating an intention to repay or to be repaid, held, the transfer was a dividend to the extent of earnings and profits of the acquired corporation within the meaning of section 115(a). 2. Held, the doctrines of equitable estoppel, election of remedies, and laches, either as…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first issue is whether the transfer of $2,205,000 2 from Building Inc. to Investment on June 29, 1946, constituted a “loan,” as argued by petitioners, or a distribution taxable as a dividend, as contended by respondent.
Section 115 of the Internal Eevenue Code of 1939 provides as follows:
SEO. 115. DISTRIBUTIONS BY CORPORATIONS.(a) Definition of Dividend. — The term “dividend” when nsed in this chapter * * * means any distribution made by a corporation to its shareholders, whether in money or in other property, (1) out of its earnings or profits accumulated after…
2Cases cited48 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Phillips v. CommissionerSupreme Court of the United States · 1931
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- United States v. SummerlinSupreme Court of the United States · 1940
- Commissioner v. SternSupreme Court of the United States · 1958
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3Cited by30 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Thompson v. CommissionerUnited States Tax Court · 1982
- Haag v. CommissionerUnited States Tax Court · 1987
- Jonathan B. Geftman v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1998
- United States v. CohnDistrict Court, S.D. New York · 1988
25 more not listed; retrieve them via the Exa API.