Texas-Canadian Oil Corp. v. Commissioner
United States Board of Tax Appeals
Two foreign corporations, outside of the United States, exchanged oil and gas leases in Texas for stock in a transaction which, if between domestic corporations, would have constituted a nontaxable reorganization within section 112(b)(4), Revenue Act of 1934. The parties did not prior to the transaction comply with section 112(i), denying a foreign corporation the status of a corporation in such transaction unless prior thereto it has been established to the satisfaction of…
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Two foreign corporations, outside of the United States, exchanged oil and gas leases in Texas for stock in a transaction which, if between domestic corporations, would have constituted a nontaxable reorganization within section 112(b)(4), Revenue Act of 1934. The parties did not prior to the transaction comply with section 112(i), denying a foreign corporation the status of a corporation in such transaction unless prior thereto it has been established to the satisfaction of the Commissioner that the exchange is not in pursuance of a plan having as one of its principal purposes the avoidance…
1Opinion of the Court
*916OPINION.
Disney:
The respondent in the deficiency notice added to petitioner’s income as reported $257,700.03 “profit on reorganization”, explaining that the reorganization was held to result in realization of taxable gain under the provisions of article 112 (i) — 1 of Regulations 86,1 and the assets transferred, and therefore the stock received therefor, had value in excess of cost basis of the assets transferred.. Our primary question, therefore, is whether the respondent erred in determining a profit on the reorganization by applying the provisions of the above regulation, based upon section…
2Cases cited4 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Poe v. SeabornSupreme Court of the United States · 1930
- J. E. Riley Investment Co. v. CommissionerSupreme Court of the United States · 1940
- Helvering v. Elbe Oil Land Development Co.Supreme Court of the United States · 1938
3Cited by8 opinions
- Abegg v. CommissionerUnited States Tax Court · 1968
- H. H. Robertson Co. v. CommissionerUnited States Tax Court · 1972
- Sherwood Properties v. CommissionerUnited States Tax Court · 1987
- CONSTRUCTION AGGREGATES CORPORATION v. United StatesDistrict Court, N.D. Illinois · 1972
- Abegg v. CommissionerUnited States Tax Court · 1968
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