Brown-Forman Corp. v. Commissioner
United States Tax Court
Manufacturer of alcoholic beverages paid Federal excise tax on distilled spirits sold domestically and utilized DISC as commission agent for export sales of its liqueur product. Held, for purposes of computing the overall profit percentage limitation (OPPL) under sec. 1.994-2, Income Tax Regs., "gross receipts" from domestic sales includes the total sales proceeds received from customers, without reduction for manufacturer's payment of excise tax on distilled spirits.
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Manufacturer of alcoholic beverages paid Federal excise tax on distilled spirits sold domestically and utilized DISC as commission agent for export sales of its liqueur product. Held, for purposes of computing the overall profit percentage limitation (OPPL) under sec. 1.994-2, Income Tax Regs., "gross receipts" from domestic sales includes the total sales proceeds received from customers, without reduction for manufacturer's payment of excise tax on distilled spirits. Held, further, for purposes of the OPPL, gross receipts from export sales does not include any amount attributable to the…
1Opinion of the Court
WELLS, Judge:
Respondent determined deficiencies in Federal income tax as follows:
TYE Amount
Apr. 30, 1981. $1,668,237
Apr. 30, 1983. 319,381
After concessions by petitioner, the issues for consideration herein are as follows: (1) Whether “gross receipts” from domestic sales, for purposes of the “overall profit percentage limitation” (OPPL) imposed by section 1.994-2(b)(3), Income Tax Regs., may be reduced to reflect the seller’s payment of the Federal excise tax on distilled spirits, (2) whether “gross receipts,” for purposes of the OPPL, includes amounts attributable to the extinguishment of…
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