Regal Shoe Co. v. Commissioner
United States Board of Tax Appeals
Where one corporation owns the entire capital stock of other corporations, they will be treated as separate legal entities, except only in extraordinary or fraudulent instances.
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Where one corporation owns the entire capital stock of other corporations, they will be treated as separate legal entities, except only in extraordinary or fraudulent instances. Where in 1907 one corporation issued its capital stock for the capital stock of other corporations, such capital stock acquired is tangible property by the express provision of section 325 of the Revenue Act of 1918, notwithstanding the assets of such other corporations consist largely of good will and other intangibles. The subsequent liquidation of such acquired capital stock and merger of such corporations into the…
1Opinion of the Court
*898OPINION.
Sternhagen :
Is the taxpayer’s invested capital to be computed under section 326 of the Revenue Act of 1918 upon the theory that $3,499,000 par value of its original capital stock was issued on January 18, 1907, in payment for tangible property consisting of capital stock of the three predecessor corporations the value of which is conceded to be no less than the par value of the taxpayer’s stock then issued; or upon the theory that the taxpayer’s stock was issued for the corporate assets of the three predecessor corporations, which assets concededly included intangibles having a value…
2Cases cited4 opinions
- Cannon Manufacturing Co. v. Cudahy Packing Co.Supreme Court of the United States · 1925
- United States v. PhellisSupreme Court of the United States · 1921
- DeGanay v. LedererSupreme Court of the United States · 1919
- Cullinan v. Walker, Collector of Internal RevenueSupreme Court of the United States · 1923
3Cited by17 opinions
- Simms v. CommissionerUnited States Board of Tax Appeals · 1933
- Foundation Co. v. United StatesUnited States Court of Claims · 1936
- Stutz Motor Car Co. of America v. United StatesCourt of Appeals for the Seventh Circuit · 1935
- Wells v. CommissionerUnited States Board of Tax Appeals · 1933
- Albert Lea Packing Co. v. CommissionerUnited States Board of Tax Appeals · 1931
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