Consolidated Premium Iron Ores, Ltd. v. Commissioner
United States Tax Court
1. Where individual petitioners at all times acted as agents or representatives of certain corporations existing or to be formed, they were not liable personally or in their individual capacity for income arising from the bargain purchase of stock of one corporation by a second corporation. 2. Under the Tax Convention and Protocol between the United States and Canada, where a Canadian corporation did not engage in trade or business within the United States and did not have a…
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1. Where individual petitioners at all times acted as agents or representatives of certain corporations existing or to be formed, they were not liable personally or in their individual capacity for income arising from the bargain purchase of stock of one corporation by a second corporation. 2. Under the Tax Convention and Protocol between the United States and Canada, where a Canadian corporation did not engage in trade or business within the United States and did not have a "permanent establishment" therein, such corporation is not liable to the United States for taxes on the income of such…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
It is at once evident on the statement of the issues in these cases that respondent has taken two utterly inconsistent positions in his determinations. If Premium was liable for taxes on the bargain purchase of 1,437,500 shares of Steep Rock stock at 1 cent per share, as respondent originally held, the individual petitioners cannot also be liable — and vice versa. Confronted with this situation at the hearing, counsel for respondent elected to rely primarily on the individual liability of Eaton and Daley, the liability of the corporation being regarded as an…
2Cases cited7 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. EubankSupreme Court of the United States · 1941
- Lewellyn v. Pittsburgh, B. & L. E. R.Court of Appeals for the Third Circuit · 1915
- Herbert v. RiddellDistrict Court, S.D. California · 1952
2 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Commissioner of Internal Revenue v. Spermacet Whaling & Shipping Co., S/ACourt of Appeals for the Sixth Circuit · 1960
- Commissioner of Internal Revenue v. Consolidated Premium Iron Ores, Limited, Commissioner of Internal Revenue v. William R. Daley and F. Cassie Daley, Commissioner of Internal Revenue v. Cyrus S. EatonCourt of Appeals for the Sixth Circuit · 1959
- Commissioner v. Consolidated Premium Iron Ores, Ltd.Court of Appeals for the Sixth Circuit · 1959
- Commissioner of Internal Revenue v. Spermacet Whaling & Shipping Co., S/ACourt of Appeals for the Sixth Circuit · 1960
- Consolidated Premium Iron Ores, Ltd. v. CommissionerUnited States Tax Court · 1957
1 more not listed; retrieve them via the Exa API.