Aiken Industries, Inc. v. Commissioner
United States Tax Court
Held: 1. Interest paid by a United States corporation to a corporation organized under the laws of Honduras to collect such interest on behalf of a Bahamian corporation was not exempt from United States income tax under art. IX of the United States-Honduras Income Tax Convention. Therefore, petitioner, as successor to the payor, is liable for withholding taxes on such payments. 2. The penalties provided for under sec. 6651(a) for failure to file a return are not applicable.
1Opinion of the Court
Quealy, Judge:
The respondent determined deficiencies in withholding tax and additions thereto under section 6651(a)1 as follows:
Additions to tax under Year Deficiency sec. 6651 (a)
1964_ $27, 000 $6, 750
1965____-_ 27,000 6,750
The statutory notice of deficiency was mailed to the petitioner after the statute of limitations barred assessment of the tax for 1964 with the consequence that respondent concedes the deficiency and the addition to tax for that year. Hence, the only year now before this Court is 1965. The issues presented for decision with respect to that year are:(1) Whether interest…
2Cases cited8 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Cook v. United StatesSupreme Court of the United States · 1933
- Maximov v. United StatesSupreme Court of the United States · 1963
3 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Northern Indiana Public Service Company v. Commissioner of Internal Revenue, Cross-AppelleeCourt of Appeals for the Seventh Circuit · 1997
- Northern Ind. Pub. Serv. Co. v. CommissionerUnited States Tax Court · 1995
- SDI Netherlands B v. v. CommissionerUnited States Tax Court · 1996
- AMBASE CORP. v. COMMISSIONERUnited States Tax Court · 2001
- Aiken Industries, Inc. v. CommissionerUnited States Tax Court · 1971
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