Pitkin v. Commissioner
United States Board of Tax Appeals
A banking corporation, for the purpose of meeting the requirements of a local statute in regard to intercorporate holding of stocks, increased its capital stock and sold the additional shares to its stockholders at $150,000 above par; it thereupon declared and paid a dividend of $200,000 to a committee of the stockholders who used the amount to purchase stock of another corporation. The several steps were in accordance with a prearranged plan.
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A banking corporation, for the purpose of meeting the requirements of a local statute in regard to intercorporate holding of stocks, increased its capital stock and sold the additional shares to its stockholders at $150,000 above par; it thereupon declared and paid a dividend of $200,000 to a committee of the stockholders who used the amount to purchase stock of another corporation. The several steps were in accordance with a prearranged plan. Held that the $150,000 of the so-called dividend was merely a repayment of an amount advanced by the stockholders as a loan for a particular purpose…
1Opinion of the Court
GEORGE P. PITKIN, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Pitkin v. Commissioner
Docket No. 65173.
United States Board of Tax Appeals
31 B.T.A. 403; 1934 BTA LEXIS 1105;
October 23, 1934, Promulgated
A banking corporation, for the purpose of meeting the requirements of a local statute in regard to intercorporate holding of stocks, increased its capital stock and sold the additional shares to its stockholders at $150,000 above par; it thereupon declared and paid a dividend of $200,000 to a committee of the stockholders who used the amount to purchase stock of another…
2Cases cited1 opinion
- Pitkin v. CommissionerUnited States Board of Tax Appeals · 1934