United Artists Theatre Circuit, Inc. v. Commissioner
United States Tax Court
Dividend irrevocably set aside and made available to all preferred stockholders upon conversion of their shares pursuant to a recapitalization, even though not all the stockholders had surrendered their shares and received the dividend by the end of the tax year, held not a preferential distribution within the meaning of section 27(g) of the Revenue Act of 1936, where, under state law, the recapitalization was binding upon all stockholders.
1Opinion of the Court
OPINION.
Aeundell, Judge:
Respondent determined that the dividend of $450,000 declared on May 17, 1937, of which $377,430 was distributed to stockholders in the tax year, was preferential within the meaning of section 27 (g) of the Revenue Act of 1936:(g) Preferential Dividends. — No dividends paid credit shall be allowed with respect to any distribution unless the distribution is pro rata, equal in amount, and with no preference to any share of stock as compared with other shares of the same class.
The correctness of that determination is the only issue.
Examination of the briefs of the…
2Cases cited11 opinions
- Helvering v. StuartSupreme Court of the United States · 1942
- Keller v. Wilson Co. Inc.Supreme Court of Delaware · 1936
- Consolidated Film Industries, Inc. v. JohnsonSupreme Court of Delaware · 1937
- Patterson v. Durham Hosiery MillsSupreme Court of North Carolina · 1939
- Davison v. Parke, Austin & Lipscomb, Inc.New York Court of Appeals · 1941
6 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- New York Stocks, Inc. v. CommissionerUnited States Tax Court · 1947
- National Sec. Series--Industrial Stocks Series v. CommissionerUnited States Tax Court · 1949
- National Sec. Series--Industrial Stocks Series v. CommissionerUnited States Tax Court · 1949
- New York Stocks, Inc. v. CommissionerUnited States Tax Court · 1947
- New York Stocks, Inc. v. CommissionerUnited States Tax Court · 1947
1 more not listed; retrieve them via the Exa API.