Carborundum Co. v. Commissioner
United States Tax Court
Petitioner elected, under art. XIII of the United States-United Kingdom Income Tax Convention, to treat the British standard tax appropriate to the dividends received by it from two wholly owned United Kingdom subsidiaries as having been paid by it. On its returns for 1961 and 1962, petitioner reported the amount of such tax plus the amounts actually received as dividend income, i.e., "grossed up" the amount of such tax.
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Petitioner elected, under art. XIII of the United States-United Kingdom Income Tax Convention, to treat the British standard tax appropriate to the dividends received by it from two wholly owned United Kingdom subsidiaries as having been paid by it. On its returns for 1961 and 1962, petitioner reported the amount of such tax plus the amounts actually received as dividend income, i.e., "grossed up" the amount of such tax. In computing its credit, under sec. 902(a), I.R.C. 1954, for its share of the United Kingdom profits tax imposed upon the subsidiaries, petitioner used such "grossed-up"…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies in petitioner’s income tax for the taxable years 1961 and 1962 in the amounts of $65,272 and $354,020, respectively. The Sole issue involved is the amount of the dividend that should be utilized as the numerator of the first fraction applicable in calculating the foreign tax credit to which petitioner is entitled under section 902 ( a) ,1
OPINION
All of the facts have been stipulated. The stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference.
Petitioner is a domestic corporation with its…
2Cases cited11 opinions
- Biddle v. CommissionerSupreme Court of the United States · 1938
- United States v. New YorkSupreme Court of the United States · 1942
- American Chicle Co. v. United StatesSupreme Court of the United States · 1942
- National Carbon Co. v. CommissionerUnited States Tax Court · 1943
- Wisconsin Gas & Electric Co. v. United StatesSupreme Court of the United States · 1944
6 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Carborundum Co. v. CommissionerUnited States Tax Court · 1972