Carborundum Co. v. Commissioner
United States Tax Court
1. Petitioner received from its Canadian subsidiary dividend distributions of $ 337,841.25, $ 108,109.20, and $ 108,109.20 on July 13, July 16, and September 30, 1940, or an aggregate of $ 554,059.65. The amount of net abnormal income of petitioner for 1940 resulting from these distributions was $ 427,497.15. The net earnings of the subsidiary after taxes for 1940 were $ 470,975.16. Held, in the absence of proof that the earnings for 1940 of the Canadian subsidiary at the…
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1. Petitioner received from its Canadian subsidiary dividend distributions of $ 337,841.25, $ 108,109.20, and $ 108,109.20 on July 13, July 16, and September 30, 1940, or an aggregate of $ 554,059.65. The amount of net abnormal income of petitioner for 1940 resulting from these distributions was $ 427,497.15. The net earnings of the subsidiary after taxes for 1940 were $ 470,975.16. Held, in the absence of proof that the earnings for 1940 of the Canadian subsidiary at the time of the dividend distributions were less than the amounts distributed by it, petitioner is not entitled to an…
1Opinion of the Court
Harlan, Judge-.
This proceeding involves deficiencies in income, declared value excess profits, and excess profits taxes for the calendar year 1940 in the respective amounts of $417.17, $79.23, and $2,482.12. The petitioner claims refund of such taxes in an aggregate amount in excess of $100,000.
Two issues raised by the pleadings with reference to depreciation and New York City sales taxes have been conceded by the respondent. The questions presented for our determination are the following:(1) Is petitioner entitled to relief from excess profits tax for 1940 under sectioii 721 of the code…
2Cases cited4 opinions
- Edwards v. DouglasSupreme Court of the United States · 1925
- Arrow-Hart & Hegeman Electric Co. v. CommissionerUnited States Tax Court · 1946
- Surface Combustion Corp. v. CommissionerUnited States Tax Court · 1947
- Pacific Gas & Electric Co. v. CommissionerUnited States Tax Court · 1946
3Cited by3 opinions
- A. B. Carter, Inc. v. CommissionerUnited States Tax Court · 1950
- Carborundum Co. v. CommissionerUnited States Tax Court · 1949
- Southwest Pump Co. v. CommissionerUnited States Tax Court · 1950