Koppers Co. v. Commissioner
United States Tax Court
Petitioner is a transferee of the Koppers Products Co., of which it was the sole stockholder, having received its assets and assumed its liabilities upon its final liquidation in 1936. In 1935 petitioner had determined to liquidate the subsidiary, which had a large bond issue outstanding in the hands of the public.
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Petitioner is a transferee of the Koppers Products Co., of which it was the sole stockholder, having received its assets and assumed its liabilities upon its final liquidation in 1936. In 1935 petitioner had determined to liquidate the subsidiary, which had a large bond issue outstanding in the hands of the public. The subsidiary had neither the funds nor the credit necessary to purchase its outstanding bonds, but petitioner's credit was sufficient and it borrowed the necessary funds in 1935 and purchased bonds from the individual holders at a figure slightly below par. These bonds, with all…
1Opinion of the Court
OPINION.
Leech, Judge:
Petitioner admits that it is a transferee of the Hoppers Products Co. and liable as such for any tax deficiency of that company. It denies, however, that there is any deficiency. The deficiency results from respondent’s treating the transaction, under which petitioner acquired certain bonds of its subsidiary at a price below par in the open market and then brought about their redemption by the subsidiary, as in reality a transaction of the subsidiary and the gain accruing as taxable to it.
In the notice of deficiency respondent makes no mention of any specific statutory…
2Cases cited1 opinion
- Gregory v. HelveringSupreme Court of the United States · 1935
3Cited by40 opinions
- Hospital Corp. of America v. CommissionerUnited States Tax Court · 1983
- Hugh Smith, Inc. v. CommissionerUnited States Tax Court · 1947
- Simon J. Murphy Company and Social Research Foundation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Gross v. CommissionerUnited States Tax Court · 1955
- Polak's Frutal Works, Inc. v. CommissionerUnited States Tax Court · 1954
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