American Nat'l Bank v. Commissioner
United States Board of Tax Appeals
1. The petitioner paid the capital stock taxes assessed against it by the State of Minnesota on the outstanding shares of its capital stock in the hands of its shareholders, charge such payments to expense, and did not withhold the amounts thereof from dividends due shareholders.
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1. The petitioner paid the capital stock taxes assessed against it by the State of Minnesota on the outstanding shares of its capital stock in the hands of its shareholders, charge such payments to expense, and did not withhold the amounts thereof from dividends due shareholders. Held, that in the circumstance herein the failure of the bank to collect the payments in question from dividends due its shareholders is in effect a distribution of surplus to such shareholders and is not an allowable deduction from petitioner's gross income, in either of the taxable years involved. 2. The petitioner…
1Opinion of the Court
*480OPINION.
Lansdon:
The petitioner seeks the relief claimed in issue (1) as set forth in our findings of fact under section 234(a) (3) of the Revenue Act of 1918, which allows as a deduction from gross income “ taxes paid or accrued in the taxable year.” The amounts in question represent capital stock taxes assessed by the State of Minnesota. The applicable provisions of the state taxing statutes are as follows :
2018. Same — The stock of ever}' bank and mortgage loan company in this state, organized under the laws of this state or of the -United States, shall be assessed and taxed in the town,…
2Cases cited10 opinions
- City of Douglas v. Federal Reserve Bank of DallasSupreme Court of the United States · 1926
- Darling v. PeckOhio Supreme Court · 1846
- United States Nat. Bank v. First Nat. BankCourt of Appeals for the Eighth Circuit · 1897
- Merchants' Nat. Bank of Mandan v. First Nat. Bank of DuluthCourt of Appeals for the Eighth Circuit · 1916
- Roach v. HalvorsonSupreme Court of Minnesota · 1914
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3Cited by1 opinion
- American Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1928