U.S. Padding Corp. v. Commissioner
United States Tax Court
Held: For purposes of sec. 1504(d), I.R.C. 1954, the term "laws of such country" includes any existing practice or policy of such contiguous foreign country which results in a U.S. parent finding it necessary to incorporate its foreign operations under the laws of the foreign country in order to insure that governmental approval to operate and maintain the business will be obtained.
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Held: For purposes of sec. 1504(d), I.R.C. 1954, the term "laws of such country" includes any existing practice or policy of such contiguous foreign country which results in a U.S. parent finding it necessary to incorporate its foreign operations under the laws of the foreign country in order to insure that governmental approval to operate and maintain the business will be obtained. Thus, respondent erroneously determined that petitioner was ineligible to file a consolidated return with its wholly owned Canadian subsidiary.
1Opinion of the Court
WHITAKER, Judge:
On June 19, 1981, respondent issued a statutory notice of deficiency to petitioner for its fiscal years ended June 30, 1978, and June 30, 1979. Respondent determined deficiencies in the amounts of $49,066 and $108,309 for each year respectively, disallowing the consolidation by petitioner of its gross income and deductions with its wholly owned Canadian subsidiary. After concessions, the issue for decision is whether respondent erroneously determined that petitioner was ineligible to file a consolidated return.1
FINDINGS OF FACT
Some of the facts have been stipulated and are so…
2Cases cited7 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Takao Ozawa v. United StatesSupreme Court of the United States · 1922
- Helvering v. BlissSupreme Court of the United States · 1934
- Huntsberry v. CommissionerUnited States Tax Court · 1984
- J. C. Penney Company, Transferee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
2 more not listed; retrieve them via the Exa API.
3Cited by54 opinions
- Norfolk Southern Corp. v. CommissionerUnited States Tax Court · 1995
- Estate of Wallace v. CommissionerUnited States Tax Court · 1990
- Centel Communications Co. v. CommissionerUnited States Tax Court · 1989
- U.S. Padding Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1989
- Merkel v. CommissionerUnited States Tax Court · 1997
49 more not listed; retrieve them via the Exa API.