De Nobili Cigar Co. v. Commissioner
United States Tax Court
1. Amounts paid in redemption of shares originally issued as stock dividends held, upon the facts, essentially equivalent to the distribution of taxable dividends, section 115 (g), Revenue Acts of 1936 and 1938; held, further, nonresident alien stockholders are subject to tax upon amounts treated as dividends under section 115 (g). 2. The redemption at par of shares originally issued for cash at par, held not the equivalent of a taxable dividend.
1Opinion of the Court
OPINION.
Aeundell, Judge:
Proposed deficiencies in income (withholding) tax amounting to $2,630, $76,677.22, and $51,263.58 for the years 1936, 1937, and 1938, respectively, are the subject of the present controversy. The issues are whether amounts paid in redemption of preferred stock were essentially equivalent to the distribution of taxable dividends; and, if so, whether they should be treated as such in the hands of nonresident alien stockholders. The facts are found as stipulated. The returns for the periods involved were filed with the collector for the first district of New York.
Petitione…
2Cases cited1 opinion
- Gregory v. HelveringSupreme Court of the United States · 1935
3Cited by9 opinions
- Long v. CommissionerUnited States Tax Court · 1945
- Adams v. CommissionerUnited States Tax Court · 1945
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- Adams v. CommissionerUnited States Tax Court · 1945
- Annis Furs, Inc. v. CommissionerUnited States Tax Court · 1943
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