Oregon Pulp & Paper Co. v. Commissioner
United States Board of Tax Appeals
1. By a written contract executed prior to May 1, 1936, petitioner was prohibited from distributing cash dividends. Held, since there was no contract restriction on paying dividends in some form other than cash, petitioner is not entitled to a credit under section 26(c)(1), Revenue Act of 1936, following Commissioner v. Columbia River Paper Mills, 127 Fed.(2d) 558. 2. Petitioner agreed to pay interest on certain income bonds from the date thereof, regardless of the time when…
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1. By a written contract executed prior to May 1, 1936, petitioner was prohibited from distributing cash dividends. Held, since there was no contract restriction on paying dividends in some form other than cash, petitioner is not entitled to a credit under section 26(c)(1), Revenue Act of 1936, following Commissioner v. Columbia River Paper Mills, 127 Fed.(2d) 558. 2. Petitioner agreed to pay interest on certain income bonds from the date thereof, regardless of the time when such bonds were exchanged for outstanding preferred stock. Petitioner kept its books and reported income on the accrual…
1Opinion of the Court
Aenold :
This proceeding involves income tax deficiencies for 1936 and 1937 in the respective amounts of $28,929.61 and $35,747.48. By an amended answer respondent asks the Board to increase the deficiencies to $28,938.24 for 1936 and $44,004.14 for 1937. Three issues are presented, viz.: (1) Whether petitioner is entitled to a credit for a contract restricting the payment of dividends under section 26 (c) of the Revenue Act of 1936 for each of the taxable years, (2) the amount of interest, if any, that petitioner is entitled to deduct on certain income bonds issued by petitioner, and (3)…
2Cases cited1 opinion
- United States v. AndersonSupreme Court of the United States · 1926
3Cited by10 opinions
- Dravo Corporation v. The United StatesUnited States Court of Claims · 1965
- Monon Railroad v. CommissionerUnited States Tax Court · 1970
- Cunningham v. CommissionerUnited States Tax Court · 1965
- Japanese Trading Co. v. CommissionerUnited States Tax Court · 1966
- Keller-Dorian Corp. v. CommissionerUnited States Tax Court · 1945
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