Gage Bros. & Co. v. Commissioner
United States Tax Court
1. Merger under Illinois statute held not to entitle resulting corporation to its predecessor's equity invested capital for purposes of excess profits tax. 2. Arm's length transaction between creditors and debtor corporation's stockholders which resulted in settlement of obligation and transfer of the business to petitioner, a new corporation in which creditors and old stockholders had control and the interests of the parties were substantially unaltered, held to have…
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1. Merger under Illinois statute held not to entitle resulting corporation to its predecessor's equity invested capital for purposes of excess profits tax. 2. Arm's length transaction between creditors and debtor corporation's stockholders which resulted in settlement of obligation and transfer of the business to petitioner, a new corporation in which creditors and old stockholders had control and the interests of the parties were substantially unaltered, held to have constituted a nontaxable exchange under Internal Revenue Code, section 112 (b) (5), Alexander R. Duncan, 9 T. C. 468,…
1Opinion of the Court
OPINION.
OppeR, Judge-.
We are indebted to petitioner’s counsel for a summary of the issues, which, as an aid to simplification of both the consideration and the discussion of the complicated questions involved, we quote in full:
la summary, the petitioner’s argument presents the following solutions to the court:
1. The petitioner and Old Gage are in fact and under the express language of the Illinois statute, pursuant to which the merger was accomplished in 1936, a single entity and the equity invested capital of the petitioner in the computation of its excess profits tax liability in issue is…
2Cases cited13 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Burnet v. HarmelSupreme Court of the United States · 1932
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
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3Cited by8 opinions
- Differential Steel Car Co. v. Comm'rUnited States Tax Court · 1951
- Bessemer Limestone & Cement Co. v. CommissionerUnited States Tax Court · 1954
- Bessemer Limestone & Cement Co. v. CommissionerUnited States Tax Court · 1956
- Bessemer Limestone & Cement Co. v. CommissionerUnited States Tax Court · 1954
- Bessemer Limestone & Cement Co. v. CommissionerUnited States Tax Court · 1954
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