Novelart Mfg. Co. v. Commissioner
United States Tax Court
Held, that the petitioner has not shown that it was not availed of during the taxable years in question for the purpose of avoiding the income tax with respect to its shareholder by permitting its earnings and profits for such years to accumulate instead of being divided or distributed, and that it is therefore subject to the accumulated earnings tax imposed by sec. 531, I.R.C. 1954.
1Opinion of the Court
OPINION
The accumulated earnings tax imposed by section 531 of the Internal Revenue Code of 1954 applies, with certain exceptions, to any corporation formed or availed of for the purpose of avoiding the income tax with respect to its shareholders by permitting earnings and profits to accumulate instead of being divided or distributed. There are set forth in the margin pertinent sections of the Internal Revenue Code of 1954.2
Section 533(b) provides that the fact that any corporation is a mere holding or investment company shall be prima facie evidence of the purpose to avoid the income tax with…
2Cases cited4 opinions
- United States v. Donruss Co.Supreme Court of the United States · 1969
- The Smoot Sand & Gravel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- John P. Scripps Newspapers v. CommissionerUnited States Tax Court · 1965
- Kerr-Cochran, Inc. v. CommissionerUnited States Tax Court · 1958
3Cited by14 opinions
- Ivan Allen Co. v. United StatesSupreme Court of the United States · 1975
- Atlantic Properties, Inc. v. CommissionerUnited States Tax Court · 1974
- Golconda Mining Corp. v. CommissionerUnited States Tax Court · 1972
- Novelart Manufacturing Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1970
- Alma Piston Co. v. CommissionerUnited States Tax Court · 1976
9 more not listed; retrieve them via the Exa API.