National Carbon Co. v. Commissioner
United States Tax Court
The excess of fair market value of an asset distributed in kind over its cost to the distributing corporation, petitioner's wholly owned foreign subsidiary, held not to have augmented earnings or profits of the subsidiary; held, further, inasmuch as the subsidiary had sufficient accumulated earnings and profits from other sources, the distribution was a dividend out of those earnings to the extent of the fair market value of the asset distributed, and petitioner is deemed by…
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The excess of fair market value of an asset distributed in kind over its cost to the distributing corporation, petitioner's wholly owned foreign subsidiary, held not to have augmented earnings or profits of the subsidiary; held, further, inasmuch as the subsidiary had sufficient accumulated earnings and profits from other sources, the distribution was a dividend out of those earnings to the extent of the fair market value of the asset distributed, and petitioner is deemed by section 131 (f) of the Revenue Act of 1934 to have paid a proper proportion of the foreign income taxes paid by the…
1Opinion of the Court
OPINION.
Arundell, Judge:
This proceeding is to contest the determination of an income tax deficiency of $75,385.15 for the year 1935, which resulted from the Commissioner’s determination that the credit for foreign taxes deemed to have been paid by petitioner and allowable under section 131 (f) of the Revenue Act of 1934 is $13,784.38 instead of $89,169.53, as contended by petitioner. The facts are found as stipulated or admitted in the pleadings. The return was filed in the third district of New York.
During 1935 petitioner received a dividend in kind from its wholly owned subsidiary, Canadian…
2Cases cited2 opinions
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
3Cited by31 opinions
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- Steel Improv. & Forge Co. v. CommissionerUnited States Tax Court · 1961
- Commissioner of Internal Revenue v. Godley's EstateCourt of Appeals for the Third Circuit · 1954
- First State Bank v. CommissionerUnited States Tax Court · 1947
- Godley v. CommissionerUnited States Tax Court · 1953
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