Square D Company and Subsidiaries v. Commissioner

121 T.C. No. 11

UNITED STATES TAX COURT SQUARE D COMPANY AND SUBSIDIARIES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 6067-97. Filed September 26, 2003. P was a publicly held U.S. corporation and, after its acquisition by a foreign corporation (S) through a reverse subsidiary merger, was a U.S. corporation indirectly owned by S, during the years in issue. To finance the acquisition of P, S obtained a commitment from two banks to extend loans to a to-be- organized subsidiary equal to one-half the acquisition price, not to exceed $1.125 billion. The subsidiary was…