Harper Group v. Commissioner
United States Tax Court
H, the common parent of an affiliated group of corporations filing consolidated income tax returns, is a holding company which engages, through certain of its domestic and foreign subsidiaries, in businesses related to the international shipment of cargo by air and sea. H organized R, an insurance company subsidiary, to provide liability insurance to H's subsidiaries. R also provided insurance coverage to customers using the shipping services of H's subsidiaries.
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H, the common parent of an affiliated group of corporations filing consolidated income tax returns, is a holding company which engages, through certain of its domestic and foreign subsidiaries, in businesses related to the international shipment of cargo by air and sea. H organized R, an insurance company subsidiary, to provide liability insurance to H's subsidiaries. R also provided insurance coverage to customers using the shipping services of H's subsidiaries. Premium revenues from such customers accounted for 29 percent, 32 percent, and 33 percent of R's gross premium revenue in 1981,…
1Opinion of the Court
JACOBS, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income taxes:
Year Deficiency
1981. $5,224,177
1982 . 2,114,098
1983 . 3,439,865
After concessions, the issues for decision are: (1) Whether insurance premiums paid by certain domestic subsidiaries of The Harper Group (Harper) to Rampart Insurance Co., Ltd. (Rampart), an indirectly wholly owned subsidiary of Harper, are deductible under section 162,1 and if not (2) whether the premiums paid by certain foreign subsidiaries of Harper to Rampart constitute constructive dividends to Harper.
Amounts paid for insurance…
2Cases cited19 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Helvering v. Le GierseSupreme Court of the United States · 1941
- Carnation Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Clougherty Packing Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1987
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3Cited by24 opinions
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- Florida Hosp. Trust Fund v. CommissionerUnited States Tax Court · 1994
- Ocean Drilling & Exploration Company, (On Behalf of Itself and Its Consolidated Subsidiaries) v. The United StatesCourt of Appeals for the Federal Circuit · 1993
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