Bishop & B. Mfg. Co. v. Commissioner
United States Board of Tax Appeals
Stock certificates issued by petitioner provided that the holders of prior preference stock would be entitled to receive, out of the surplus or net profits of the company, cumulative dividends at the rate of 6 percent before any dividends were paid on the preferred or common stock, and that the holders of preferred stock would be entitled to receive, out of the surplus or net profits of the company, cumulative dividends at the rate of 7 percent after payment of all…
Read the full summary
Stock certificates issued by petitioner provided that the holders of prior preference stock would be entitled to receive, out of the surplus or net profits of the company, cumulative dividends at the rate of 6 percent before any dividends were paid on the preferred or common stock, and that the holders of preferred stock would be entitled to receive, out of the surplus or net profits of the company, cumulative dividends at the rate of 7 percent after payment of all accumulated dividends on prior preference stock and before any dividends were paid on the common stock. Throughout the taxable…
1Opinion of the Court
*778OPINION.
Turner:
Petitioner contends that the stock certificates issued to its stockholders constitute written contracts executed by the corporation within the meaning of section 26 (c) (1) of the Revenue Act of 1936,1 that under the provisions of said contracts it could pay dividends on its prior preference and preferred stock, only from “surplus or net profits” and could not pay dividends on its common stock if it was in arrears in paying accumulated dividends on its prior preference and preferred stock, that at all times during 1937 it was in arrears in paying accumulated dividends on its…
2Cases cited1 opinion
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
3Cited by6 opinions
- Supplee-Biddle Hardware Co. v. CommissionerCourt of Appeals for the Third Circuit · 1944
- American Gypsum Co. v. CommissionerUnited States Tax Court · 1944
- Bishop & B. Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Helms Bakeries v. CommissionerUnited States Board of Tax Appeals · 1942
- Hercules Gasoline Co. v. CommissionerSupreme Court of the United States · 1946
1 more not listed; retrieve them via the Exa API.