Participation Holding Co. v. Commissioner
United States Tax Court
The petitioner, the wholly owned subsidiary of Fulton, a corporation organized by an insolvent bank to liquidate its slow assets, received certain assets of the bank and issued debentures against them to the holders of the bank's certificates, formerly secured by such assets. Any residue in petitioner's hands above payment of its debentures was payable to Fulton. Fulton's assets, including any such residue, were subject to payment of the bank's depositors.
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The petitioner, the wholly owned subsidiary of Fulton, a corporation organized by an insolvent bank to liquidate its slow assets, received certain assets of the bank and issued debentures against them to the holders of the bank's certificates, formerly secured by such assets. Any residue in petitioner's hands above payment of its debentures was payable to Fulton. Fulton's assets, including any such residue, were subject to payment of the bank's depositors. No residue in petitioner's hands is shown. Held, no error in denial of immunity from collection of tax under section 818, Revenue Act of…
1Opinion of the Court
OPINION.
Disney, Judge:
The petitioner, in asking for exemption from collection of tax under section 818 of the Revenue Act of 1938, as amended by section 406 of the Revenue Act of 1939,1 of course has the burden of showing itself to be strictly within the statute. Cornell v. Coyne, 192 U. S. 418; Producers' Creamery Co. v. United States, 55 Fed. (2d) 104; Jockey Club, 30 B. T. A. 670; affd., 76 Fed. (2d) 597. Under the gist of the statute governing here, it must demonstrate, in order to secure the exemption, that the depositors had accepted, in lieu of deposits, claims against assets,…
2Cases cited2 opinions
- Humes v. United StatesSupreme Court of the United States · 1928
- Cornell v. CoyneSupreme Court of the United States · 1904
3Cited by2 opinions
- Farmers State Bank v. CommissionerUnited States Tax Court · 1945
- Participation Holding Co. v. CommissionerUnited States Tax Court · 1943