Esmark, Inc. v. Commissioner
United States Tax Court
Petitioner intended to restructure its business by disposing of its energy subsidiaries and redeeming its shares. Pursuant to an agreement, Mobil acquired more than 50 percent of petitioner's shares in a public tender offer, and petitioner then distributed shares of Vickers, its wholly owned subsidiary, in redemption of the shares acquired by Mobil. Acquisition by Mobil of Vickers was the purpose of the agreement. Tax savings was the purpose of the format chosen.
Read the full summary
Petitioner intended to restructure its business by disposing of its energy subsidiaries and redeeming its shares. Pursuant to an agreement, Mobil acquired more than 50 percent of petitioner's shares in a public tender offer, and petitioner then distributed shares of Vickers, its wholly owned subsidiary, in redemption of the shares acquired by Mobil. Acquisition by Mobil of Vickers was the purpose of the agreement. Tax savings was the purpose of the format chosen. Held, petitioner's distribution of Vickers in exchange for its own stock qualified for nonrecognition under secs. 311(a) and…
1Opinion of the Court
Esmark, Inc. and Affiliated Companies v. Commissioner of Internal Revenue, Respondent
Esmark, Inc. v. Commissioner
Docket No. 33581-84
United States Tax Court
90 T.C. 171; 1988 U.S. Tax Ct. LEXIS 14; 90 T.C. No. 14;
February 2, 1988. February 2, 1988, Filed
Decision will be entered under Rule 155.
Petitioner intended to restructure its business by disposing of its energy subsidiaries and redeeming its shares. Pursuant to an agreement, Mobil acquired more than 50 percent of petitioner's shares in a public tender offer, and petitioner then distributed shares of Vickers, its wholly owned subsidiary, in…
2Cases cited57 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- United States v. Joliet & Chicago RailroadSupreme Court of the United States · 1942
52 more not listed; retrieve them via the Exa API.