Fowler Hosiery Co. v. Commissioner
United States Tax Court
1. Petitioner owned six United States subsidiaries and one wholly owned Canadian subsidiary. Petitioner and its subsidiaries sold all of their assets to Julius Kayser & Co. with the exception of their fixed assets which were leased to Kayser for 5 years. On the expiration of the leases, Kayser was required to purchase the assets at book value. The Canadian subsidiary distributed $ 1,500,000 on December 27, 1955, to petitioner.
Read the full summary
1. Petitioner owned six United States subsidiaries and one wholly owned Canadian subsidiary. Petitioner and its subsidiaries sold all of their assets to Julius Kayser & Co. with the exception of their fixed assets which were leased to Kayser for 5 years. On the expiration of the leases, Kayser was required to purchase the assets at book value. The Canadian subsidiary distributed $ 1,500,000 on December 27, 1955, to petitioner. Held, the distribution by the Canadian subsidiary to the petitioner was a distribution in partial liquidation and not an ordinary dividend. Held, further, the…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency of $205,850.70 in income tax of the petitioner for the calendar year 1955. The issues for decision are whether the amount of $1,500,000 received by petitioner from its wholly owned Canadian subsidiary was an ordinary dividend as petitioner contends or a distribution in partial liquidation as determined by respondent; if the amount was a liquidating distribution, whether petitioner in accordance with its alternative contention is entitled to a credit for foreign taxes deemed to have been paid; and whether the value of certain machines received by…
2Cases cited16 opinions
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Aurore B. Benoit, Transferee v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1956
- Benoit v. CommissionerUnited States Tax Court · 1955
- Guild v. CommissionerUnited States Board of Tax Appeals · 1930
11 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Gallagher v. CommissionerUnited States Tax Court · 1962
- Berry Petroleum Co. v. CommissionerUnited States Tax Court · 1995
- Fowler Hosiery Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1962
- Baan v. CommissionerUnited States Tax Court · 1969
- Commissioner of Internal Revenue v. John P. And Eleanor Murdoch. Henrietta O. Murdoch v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1963
13 more not listed; retrieve them via the Exa API.