Gibbs & Cox, Inc. v. Commissioner of Internal Revenue

SWAN, Circuit Judge.

Section 102 of the Internal Revenue Code, 26 U.S.C.A. Int.Rev.Code, § 102,1 imposes a surtax upon the net income of a corporation if the corporation is availed of for the purpose of preventing the imposition of surtaxes upon its 'shareholders through the medium of permitting its earnings or profits to accumulate instead of being distributed, and provides further that the fact that the corporate earnings or profits are permitted to accumulate beyond the reasonable needs of the business shall be determinative of the purpose to avoid surtax upon shareholder's unless the…