Corporacion de Ventas de Salitre y Yoda v. Commissioner
United States Board of Tax Appeals
1. Petitioner, a foreign corporation, realized gain from the purchase of its own American debentrues at a discount in a transaction taking place within the United States. 2. Interest accrued and paid on petitioner's american issue of debentures is not deductible from its income arising from such purchase. (Sec. 232, Revenue Act of 1934.)
1Opinion of the Court
*401OPINION.
Van Fossan :
The basic issue in the case at bar is whether or not the petitioner realized a gain or profit from the purchase of its own debentures at less than their face value. A negative decision of this question would automatically dispose of the case.
The petitioner contends primarily that it realized no income because it did not gain by the entire transaction, but only paid to debenture holders a part of its earnings. It fortifies its contention by three arguments:
1. The petitioner received no money or property upon the issue of its 5 percent debentures and hence the retirement of…
2Cases cited2 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. American Chicle Co.Supreme Court of the United States · 1934
3Cited by8 opinions
- Kronenberg v. CommissionerUnited States Tax Court · 1975
- United States v. Algemene Kunstzijde Unie, N. v. a Corporation Organized Under the Laws of the NetherlandsCourt of Appeals for the Fourth Circuit · 1955
- Gulf-Puerto Rico Lines, Inc. v. CommissionerUnited States Tax Court · 1974
- Porten v. CommissionerUnited States Tax Court · 1993
- Balfour, Williamson & Co. v. CommissionerUnited States Tax Court · 1943
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