F. W. Woolworth Co. v. Commissioner
United States Tax Court
1. Certain taxes paid by petitioner's English subsidiary under Schedule A of the English Income Tax Act of 1952 do not for foreign tax credit purposes qualify as an income tax or a tax paid in lieu of an income tax within the meaning of secs. 901 and 903, I.R.C. 1954. 2. Respondent's allocation of various deduction items to certain foreign-source income in order to reduce petitioner's per country limitation on taxes paid or deemed paid to England, Germany, Puerto Rico, and…
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1. Certain taxes paid by petitioner's English subsidiary under Schedule A of the English Income Tax Act of 1952 do not for foreign tax credit purposes qualify as an income tax or a tax paid in lieu of an income tax within the meaning of secs. 901 and 903, I.R.C. 1954. 2. Respondent's allocation of various deduction items to certain foreign-source income in order to reduce petitioner's per country limitation on taxes paid or deemed paid to England, Germany, Puerto Rico, and Cuba, was not required under the provisions of sec. 862(b) and the applicable underlying regulations.
1Opinion of the Court
OPINION
Issue I. Eligibility for Foreign Tax Credit of Certain Taxes Paid to Great Britain
Prior to 1918, taxes paid to foreign countries were allowed as a deduction only from United States income with the result that the same income was often subject to taxation by two sovereigns, i.e., the United States and the foreign country. In order to mitigate this heavy burden of double taxation, Congress included within the Revenue Act of 1918 provisions allowing a credit, as distinguished from a deduction, against the United States tax for certain taxes paid to foreign countries and United States…
2Cases cited19 opinions
- Biddle v. CommissionerSupreme Court of the United States · 1938
- Burnet v. Chicago Portrait Co.Supreme Court of the United States · 1932
- Columbian Rope Co. v. CommissionerUnited States Tax Court · 1964
- The Prudential Insurance Company of America v. The United StatesUnited States Court of Claims · 1963
- Keasbey & Mattison Co. v. RothensiesCourt of Appeals for the Third Circuit · 1943
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3Cited by74 opinions
- Estate of Wallace v. CommissionerUnited States Tax Court · 1990
- Miller v. CommissionerUnited States Tax Court · 1978
- Concord Consumers Hous. Coop. v. CommissionerUnited States Tax Court · 1987
- Stemkowski v. CommissionerUnited States Tax Court · 1981
- Hospital Corp. of Am. v. CommissionerUnited States Tax Court · 1997
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