Recherches Industrielles, S. A. R. I. S. A. v. Commissioner
United States Board of Tax Appeals
The taxpayer, a Swiss corporation, through an American agent rented an "office" from a Jersey City lawyer without obtaining the exclusive use of any room or even desk in his office, it being the lawyer's custom to rent an "office" in the same suite to some 50 other corporations. The taxpayer's agent did not stay there, no books were kept there, and no bank account was maintained, all receipts from American sources being sent directly to its Geneva bank.
Read the full summary
The taxpayer, a Swiss corporation, through an American agent rented an "office" from a Jersey City lawyer without obtaining the exclusive use of any room or even desk in his office, it being the lawyer's custom to rent an "office" in the same suite to some 50 other corporations. The taxpayer's agent did not stay there, no books were kept there, and no bank account was maintained, all receipts from American sources being sent directly to its Geneva bank. Held, that the petitioner had no "office" in the United States within the meaning of section 231(b), Revenue Act of 1936.
1Opinion of the Court
*255OPINION.
KeRN :
In this case petitioner was not engaged in trade or business within the United States and no showing is made that it intended to engage in trade or business here. Therefore, under the reasoning of the majority opinion in Aktiebolaget Separator, 45 B. T. A. 243, it could have no “office or place of business” within the United States within the meaning of section 231 (b) of the Eevenue Act of 1936, and on the authority of that case we must decide in favor of respondent.
However, it might be well to point out that, even under the reasoning of the dissenting opinion filed in that…
2Cases cited1 opinion
- Burnet v. HarmelSupreme Court of the United States · 1932
3Cited by2 opinions
- Neill v. CommissionerUnited States Board of Tax Appeals · 1942
- Recherches Industrielles, S. A. R. I. S. A. v. CommissionerUnited States Board of Tax Appeals · 1941