Brown Shoe Co. v. Commissioner
United States Board of Tax Appeals
Because of a desire to assure itself of the services of its president, petitioner optioned 8,000 shares of its capital stock to him at a price slightly over its then market value, in consideration for which its president agreed to serve as such officer, at his then prevailing compensation, for five years more.
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Because of a desire to assure itself of the services of its president, petitioner optioned 8,000 shares of its capital stock to him at a price slightly over its then market value, in consideration for which its president agreed to serve as such officer, at his then prevailing compensation, for five years more. During the fiscal year ending October 31, 1937, petitioner sold 1,500 shares of its previously purchased stock to its president under this option and, in the same year, sold 1,000 of the purchased shares released by its president and an additional 1,000 shares to key employees at a…
1Opinion of the Court
*214OPINION.
Leech :
Respondent has taxed the petitioner upon the difference on the price it paid and that received for its stock sold in the taxable year to its president and certain employees. Whether authority existed for this action presents the only issue.
The Revenue Act of 1936 applies. Respondent argues that section 22 (a) of that act is effectively construed by Regulations 94, article 22 (a)-16,1 and supports the tax. Petitioner contends that the *215quoted regulation is not a valid interpretation of the statute and, even if so, it precludes the contested tax since, it is argued, in carrying on…
2Cases cited6 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
1 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- General Electric Company v. The United StatesUnited States Court of Claims · 1962
- General Electric Co. v. United StatesUnited States Court of Claims · 1962
- Brown Shoe Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Edison Bros. Stores, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941
- General Electric Company v. The United StatesUnited States Court of Claims · 1962
2 more not listed; retrieve them via the Exa API.