Kaiser Aluminum & Chemical Corp. v. Commissioner
United States Tax Court
Kaiser, Comalco, and CRA after extensive negotiations agreed that KAAC (Kaiser's subsidiary) would transfer a 4-percent interest in QAL, an Australian corporation, to Comalco, along with cash; CRA agreed to transfer a 12.5-percent interest in QAL to Comalco along with cash. Kaiser and CRA each own a 45-percent interest in Comalco, also an Australian corporation, and a major producer of bauxite.
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Kaiser, Comalco, and CRA after extensive negotiations agreed that KAAC (Kaiser's subsidiary) would transfer a 4-percent interest in QAL, an Australian corporation, to Comalco, along with cash; CRA agreed to transfer a 12.5-percent interest in QAL to Comalco along with cash. Kaiser and CRA each own a 45-percent interest in Comalco, also an Australian corporation, and a major producer of bauxite. Both Kaiser and Comalco are (along with their subsidiaries) integrated producers of aluminum and aluminum products. QAL processes bauxite into alumina for its owners in proportion to their ownership…
1Opinion of the Court
OPINION
Wilbur, Judge:
Respondent determined that petitioners’ transfer of property to Comalco, an Australian corporation, is in pursuance of a plan having as one of its principal purposes the avoidance of income tax, within the meaning of section 367,1 and that the gain from the transfer must be considered as gross income. Petitioners challege respondent’s determination and have invoked the jurisdiction of this Court for a declaratory judgment pursuant to section 7477. The issue presented for our decision is whether respondent’s determination was reasonable.
Jurisdiction
The statutory…
2Cases cited1 opinion
- Dittler Bros., Inc. v. CommissionerUnited States Tax Court · 1979
3Cited by8 opinions
- Mars, Inc. v. CommissionerUnited States Tax Court · 1987
- Pitcher v. CommissionerUnited States Tax Court · 1985
- Sherwood Properties v. CommissionerUnited States Tax Court · 1987
- Ellis v. CommissionerUnited States Tax Court · 1985
- Kaiser Aluminum & Chemical Corp. v. CommissionerUnited States Tax Court · 1981
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