Credit Alliance Corp. v. Commissioner
United States Board of Tax Appeals
Petitioner, a corporation, distributed from earnings and profits accumulated since February 28, 1913, and in complete liquidation, approximately 99 percent of its assets to a corporation holding that percentage of its stock. Under section 112(b)(6), Revenue Act of 1936, no gain or loss was recognized to the distributee.
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Petitioner, a corporation, distributed from earnings and profits accumulated since February 28, 1913, and in complete liquidation, approximately 99 percent of its assets to a corporation holding that percentage of its stock. Under section 112(b)(6), Revenue Act of 1936, no gain or loss was recognized to the distributee. Held, that under section 27(f), Revenue Act of 1936, the distribution to the parent corporation was properly chargeable to earnings or profits, and must be treated as a taxable dividend paid for the purpose of computing dividends paid credit without limitation by subsection…
1Opinion of the Court
*1021OPINION.
Disney :
The question before us is: To what dividends paid credit is the petitioner entitled under the Revenue Act of 1936 because of distributions made by it in that year? Section 14 of that act imposes a tax upon “undistributed net income”, to compute which it is necessary to deduct from net income (adjusted in other particulars not here important) the sum of the dividends paid credit. Section 27 (a) provides that such dividends paid credit shall be the amount of the dividends paid during the taxable year. Section 27, by subsections (f) and (h), provides as follows:(f) Distributions…
2Cases cited4 opinions
- Hellmich v. HellmanSupreme Court of the United States · 1928
- Rodgers v. United StatesSupreme Court of the United States · 1902
- Lynch v. Metropolitan Elevated Railway Co.New York Court of Appeals · 1882
- Commercial Trust Co. v. Hudson County Board of TaxationSupreme Court of New Jersey · 1914
3Cited by12 opinions
- Seattle-First Nat. Bank v. United StatesDistrict Court, E.D. Washington · 1942
- Braicks v. HenricksenDistrict Court, W.D. Washington · 1942
- Commissioner of Internal Revenue v. Kay Mfg. Corp.Court of Appeals for the Second Circuit · 1941
- Commissioner v. Winchester Repeating Arms Co.Court of Appeals for the Seventh Circuit · 1943
- California Brewing Asso. v. CommissionerUnited States Board of Tax Appeals · 1941
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