Schuler v. Commissioner
United States Board of Tax Appeals
1. The petitioner was president and general manager of a family corporation which he had dominated and controlled since its incorporation in 1906. Belonging to the corporation were shares of stock in another corporation, which in and during the year reviewed were sold and their proceeds paid to petitioner, who, as received, deposited them to his own credit in a bank.
Read the full summary
1. The petitioner was president and general manager of a family corporation which he had dominated and controlled since its incorporation in 1906. Belonging to the corporation were shares of stock in another corporation, which in and during the year reviewed were sold and their proceeds paid to petitioner, who, as received, deposited them to his own credit in a bank. Held, the petitioner having failed to show satisfactorily that such funds were invested, as contended by him, to the use and benefit of the corporation, the respondent's determination that they constituted dividends in his hands,…
1Opinion of the Court
*417OPINION.
Lansdon:
The respondent applied section 115 (a) of the Revenue Act of 1928 (sec. 201 (a), Act of 1924 and 1926) to the facts in petitioner’s transactions with his corporation, and held that under its provision the disputed payments constituted taxable dividends. This provision reads as follows:(a) Definition of dividend. — The term “ dividend ” when used in this title ⅜ * * means any distribution made by a corporation to its shareholders, whether in money or in other property, out of its earnngs or profits accumulated after February 28, 1913.
The petitioner concedes that he received the…
2Cases cited12 opinions
- People ex rel. Attorney General v. Utica InsuranceNew York Supreme Court · 1818
- Lyon v. CommissionerUnited States Board of Tax Appeals · 1925
- Savings Bank of San Diego v. BarrettCalifornia Supreme Court · 1899
- New England Mutual Life Insurance v. PhillipsMassachusetts Supreme Judicial Court · 1886
- Seymour Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1930
7 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Schuler v. CommissionerUnited States Board of Tax Appeals · 1933