Champion Int'l Corp. v. Commissioner
United States Tax Court
In 1971, petitioner, a domestic corporation, received a dividend from Weldwood, its Canadian subsidiary, and claimed a foreign tax credit under the "deemed paid" provisions of secs. 901 and 902(a)(1), I.R.C. 1954. Weldwood had operated at a profit in 1969 and 1971, but incurred a loss in 1970; pursuant to Canadian law, Weldwood carried the loss back to 1969 and received a refund of part of the tax it had paid for that year.
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In 1971, petitioner, a domestic corporation, received a dividend from Weldwood, its Canadian subsidiary, and claimed a foreign tax credit under the "deemed paid" provisions of secs. 901 and 902(a)(1), I.R.C. 1954. Weldwood had operated at a profit in 1969 and 1971, but incurred a loss in 1970; pursuant to Canadian law, Weldwood carried the loss back to 1969 and received a refund of part of the tax it had paid for that year. Under secs. 901 and 902(a)(1), I.R.C. 1954, the "deemed paid" foreign tax credit computation is made year by year; that is, the dividends are identified as having been…
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined a deficiency in the amount of $1,149,015 in petitioner’s Federal income tax for 1972. The only issue remaining for decision is the amount of Canadian taxes paid by petitioner’s Canadian subsidiary which will be deemed to have been paid by petitioner pursuant to section 902(a)1 as a result of a dividend it received from the subsidiary in 1971.2 The resolution of this issue will require us to determine the effect of a net operating loss carryback properly claimed by the subsidiary under Canadian law on the "deemed paid” computation of section…
2Cases cited7 opinions
- Girard Trust Co. v. United StatesSupreme Court of the United States · 1926
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- The Steel Improvement and Forge Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
- Associated Telephone and Telegraph Company, and Cross v. United States of America, and CrossCourt of Appeals for the Second Circuit · 1962
- H. H. Robertson Co. v. CommissionerUnited States Tax Court · 1972
2 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Brunswick Corp. & Subsidiaries v. CommissionerUnited States Tax Court · 1993
- Amp Incorporated and Consolidated Subsidiaries v. United StatesCourt of Appeals for the Federal Circuit · 1999
- Vulcan Materials Co. v. CommissionerUnited States Tax Court · 1991
- Goodyear Tire & Rubber Co. v. United StatesUnited States Court of Claims · 1987
- The Goodyear Tire & Rubber Company and Affiliates v. The United StatesCourt of Appeals for the Federal Circuit · 1988
3 more not listed; retrieve them via the Exa API.