Pitcher v. Commissioner
United States Tax Court
Petitioners unsuccessfully sought a favorable ruling under sec. 367, I.R.C. 1954, regarding an exchange of all the outstanding shares of YPI, a domestic corporation, for a majority interest in YPL, a Canadian corporation holding the YPI shares as its only asset, followed by a public offering by YPL of its shares on a Canadian stock exchange.
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Petitioners unsuccessfully sought a favorable ruling under sec. 367, I.R.C. 1954, regarding an exchange of all the outstanding shares of YPI, a domestic corporation, for a majority interest in YPL, a Canadian corporation holding the YPI shares as its only asset, followed by a public offering by YPL of its shares on a Canadian stock exchange. Held, in light of all the facts and circumstances, respondent's ruling that petitioners' transfer had as one of its principal purposes the avoidance of Federal income taxes was unreasonable.
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined that petitioners’ transfer of stock to a Canadian corporation was "in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes,” within the meaning of section 367,1 arid that the transaction thus fails to qualify for nonrecognition treatment under section 351 or 368(a)(1)(B). Having met all jurisdictional prerequisites,2 petitioners timely filed their petition for a declaratory judgment with this Court pursuant to section 7477(a).3 The issue presented for our decision is whether respondent’s determination…
2Cases cited7 opinions
- United States v. PyneSupreme Court of the United States · 1941
- Powell v. RothensiesCourt of Appeals for the Third Circuit · 1950
- Dittler Bros., Inc. v. CommissionerUnited States Tax Court · 1979
- Hershey Foods Corp. v. CommissionerUnited States Tax Court · 1981
- Gerli & Co. v. CommissionerUnited States Tax Court · 1980
2 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Virginia Education Fund v. CommissionerUnited States Tax Court · 1985
- Mars, Inc. v. CommissionerUnited States Tax Court · 1987
- Ellis v. CommissionerUnited States Tax Court · 1985
- Mars, Inc. v. CommissionerUnited States Tax Court · 1987
- Pitcher v. CommissionerUnited States Tax Court · 1985
1 more not listed; retrieve them via the Exa API.