Belle-Vue Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. Substantially all the shares, with voting rights, of a corporation in financial difficulties were transferred in trust to representatives of its principal creditors, and the same persons formed a creditors' committee, which took over the control and management of the business. No provision of the contract expressly forbade the payment of dividends or dealt with the disposition of earnings and profits.
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1. Substantially all the shares, with voting rights, of a corporation in financial difficulties were transferred in trust to representatives of its principal creditors, and the same persons formed a creditors' committee, which took over the control and management of the business. No provision of the contract expressly forbade the payment of dividends or dealt with the disposition of earnings and profits. Held: (a) The mere probability that creditors would not permit a dividend is insufficient to support the credit provided in section 26(c)(1), Revenue Act of 1936. (b) The mere probability…
1Opinion of the Court
BELLE-VUE MANUFACTURING COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Belle-Vue Mfg. Co. v. Commissioner
Docket No. 99564.
United States Board of Tax Appeals
43 B.T.A. 12; 1940 BTA LEXIS 858;
December 6, 1940, Promulgated
1. Substantially all the shares, with voting rights, of a corporation in financial difficulties were transferred in trust to representatives of its principal creditors, and the same persons formed a creditors' committee, which took over the control and management of the business. No provision of the contract expressly forbade the payment of dividends or…
2Cases cited1 opinion
- Belle-Vue Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1940