Fidelity-Bankers Trust Co. v. McCanless

The original bill was filed to recover certain taxes paid under protest to defendant Commissioner by the complainant under the Tennessee Income Tax Law. The sole question presented is whether certain dividends paid to complainant as a stockholder were paid out of earnings or surplus, or whether they were paid out of capital and so constituted liquidating dividends.

After various pleadings not now material to the issues before us, the defendant answered, denying the complainant’s right to recover the taxes so paid.

Complainant trustee is a stockholder in Sanford Realty Company, a Tennessee…