Gregg Co. of Delaware v. Commissioner
United States Tax Court
Deduction -- Interest -- Indebtedness -- Lack of Substance -- Sec. 23 (b). -- A parent operating company transferred the operating assets of its foreign business to a foreign operating company through the petitioner, the foreign company issuing its preferred stock to the petitioner and the petitioner issuing its "Income Notes" to the parent.
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Deduction -- Interest -- Indebtedness -- Lack of Substance -- Sec. 23 (b). -- A parent operating company transferred the operating assets of its foreign business to a foreign operating company through the petitioner, the foreign company issuing its preferred stock to the petitioner and the petitioner issuing its "Income Notes" to the parent. There is no substance to the alleged indebtedness of the petitioner and it may not deduct as interest under section 23 (b) the amounts received by it as dividends on the preferred stock of the foreign operating subsidiary which it immediately distributed…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined deficiencies and additions under section 291 (a) of the Internal Revenue Code of 1939 as follows:
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The only issue for decision is whether amounts which the petitioner paid out during the taxable years were payments of interest deductible under section 23 (b). The petitioner is not contesting the additions under section 291 (a) if the amounts in controversy were not deductible as interest. Substantially all of the material facts were stipulated and the stipulation is adopted as a part of the findings of fact. All numbered…
2Cases cited3 opinions
- Janeway v. CommissionerUnited States Tax Court · 1943
- Janeway v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- 1432 Broadway Corp. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1947
3Cited by7 opinions
- Estate of Miller v. CommissionerUnited States Tax Court · 1955
- The Gregg Company of Delaware v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1956
- Monon Railroad v. CommissionerUnited States Tax Court · 1970
- Davidson Bldg. Co. v. CommissionerUnited States Tax Court · 1961
- Estate of Miller v. CommissionerUnited States Tax Court · 1955
2 more not listed; retrieve them via the Exa API.