Paraport Theatre Leasing Corp. v. Commissioner
United States Board of Tax Appeals
CREDITS ON ACCOUNT OF CONTRACTS RESTRICTING PAYMENT OF DIVIDENDS. - Petitioner entered into a written contract as of November 10, 1933, whereby it leased for a term of 10 years a moving picture theatre at Portland, Oregon, the operation of which in the taxable years 1936 and 1937 constituted its sole business.
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CREDITS ON ACCOUNT OF CONTRACTS RESTRICTING PAYMENT OF DIVIDENDS. - Petitioner entered into a written contract as of November 10, 1933, whereby it leased for a term of 10 years a moving picture theatre at Portland, Oregon, the operation of which in the taxable years 1936 and 1937 constituted its sole business. The lease contract specifically provided that petitioner should capitalize and retain as earned surplus specified percentages of its net profits, which should not be distributed in dividends during the term of the lease. Held, that the payment of dividends by petitioner during the…
1Opinion of the Court
OPINION.
Hill :
This proceeding is for the redetermination of deficiencies in income tax for the years 1936 and 1937 in the amounts of $2,512.64 and $2,838.13, respectively. The sole issue for decision is whether or not petitioner is entitled, under section 26 (c) (1) of the Revenue Act of 1936,1 to a credit in the amount of its entire current adjusted net income for purposes of surtax computation, by reason of a written contract executed by it prior to May 1, 1936, restricting the payment of dividends in the taxable years.
Petitioner is a corporation, organized under the laws of the State of…
2Cases cited1 opinion
- Koshland v. HelveringSupreme Court of the United States · 1936
3Cited by6 opinions
- Kaufmann Department Stores Securities Corp. v. CommissionerCourt of Appeals for the Third Circuit · 1944
- E. C. Atkins & Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Helms Bakeries v. CommissionerUnited States Board of Tax Appeals · 1942
- Northwest Bancorporation v. CommissionerUnited States Tax Court · 1943
- Oswego Falls Corp. v. CommissionerUnited States Board of Tax Appeals · 1942
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