Columbia Pac. Shipping Co. v. Commissioner
United States Board of Tax Appeals
1. The petitioner, a corporation, affiliated in 1928 with several other corporations, requested permission of the Commissioner to be allowed to file separate returns for that year instead of filing, as formerly, a consolidated return. The request was granted and the corporations elected to file separate returns.
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1. The petitioner, a corporation, affiliated in 1928 with several other corporations, requested permission of the Commissioner to be allowed to file separate returns for that year instead of filing, as formerly, a consolidated return. The request was granted and the corporations elected to file separate returns. Held, that they were bound by such election and the Commissioner did not err in treating the separate returns as property filed and refusing thereafter to permit the filing of a consolidated return. 2. The petitioner declared a dividend payable partly in stock of another corporation…
1Dissent
Seawell,
dissenting: I disagree with the conclusion reached on the second issue.
When petitioner’s board of directors resolved, as it did, that “ $619,760.00 be and it is appropriated and set aside from the surplus profits of the company for the payment of a ten hundred sixteen percent (1,016%) dividend upon its outstanding capital stock,” it created a liability of itself to its sole stockholder in the sum of $619,760. W. E. Caldwell Co., 6 B.T.A. 47. When petitioner discharged that liability, under a further resolution of its directors and the consent and acquiescence of the stockholder, by…
2Cases cited2 opinions
- Bacon-McMillan Veneer Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- W. E. Caldwell Co. v. CommissionerUnited States Board of Tax Appeals · 1927