Dubois Lumber Co. v. Commissioner
United States Board of Tax Appeals
AFFILIATED CORPORATIONS. - The capital stock of the petitioner was held as follows: 2,100 shares by DuBois, 500 shares by Nettleton, and 400 shares by Welch. For his holdings Welch paid in assets of an undisputed value in excess of $32,000 and gave his note for the balance of $6,788.05 due on the stock, payable out of the dividends if and when declared by the petitioner.
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AFFILIATED CORPORATIONS. - The capital stock of the petitioner was held as follows: 2,100 shares by DuBois, 500 shares by Nettleton, and 400 shares by Welch. For his holdings Welch paid in assets of an undisputed value in excess of $32,000 and gave his note for the balance of $6,788.05 due on the stock, payable out of the dividends if and when declared by the petitioner. Neither Welch nor Nettleton held any interest whatever in the consolidated group of corporations with which affiliation is claimed. Held, petitioner is not affiliated with said group of corporations within the purview of…
1Opinion of the Court
*116OPINION.
TRUSSell:
The single issue in this case is a question of corporate affiliation. The respondent has consolidated for tax purposes a group of three corporations which were owned or controlled by one individual, DuBois, but he has excepted the petitioner from the consolidated group. The petitioner claims that although all of its capital stock was not owned by DuBois, its president, nevertheless, he dominated the business, dictated the management, and he controlled the stock which he did not own, thus bringing into force that part of section 240 (e) (2) of the Revenue Act of 1921, which…
2Cited by1 opinion
- Dubois Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1930