A. C. Monk & Co. v. Commissioner
United States Tax Court
Petitioner, a corporate resident of the United States, maintained during the taxable years a branch or sales agency in China. It paid to its sales agent, a Chinese national, interest on deposits made by him. These payments were made by checks drawn by it on its bank accounts in Chinese banks and were charged on its books to the expenses of its Chinese branch.
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Petitioner, a corporate resident of the United States, maintained during the taxable years a branch or sales agency in China. It paid to its sales agent, a Chinese national, interest on deposits made by him. These payments were made by checks drawn by it on its bank accounts in Chinese banks and were charged on its books to the expenses of its Chinese branch. Held, the interest thus paid constituted income to the Chinese national from sources within the United States and petitioner should have withheld a tax therefrom.
1Opinion of the Court
OPINION.
Keen, Judge:
The question presented by the instant proceeding is whether petitioner, a domestic corporation, should have withheld during the taxable years a tax from the interest paid by it to a Chinese national out of bank accounts maintained in China for the convenience of petitioner in the conduct of its Chinese branch business. The interest so paid was upon deposits of money made by the Chinese national with petitioner, pursuant to the contract set out in our findings, for the primary purpose of protecting petitioner on sales of its product made on credit in China by the Chinese…
2Cases cited4 opinions
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
- Commissioner v. Lane-Wells Co.Supreme Court of the United States · 1944
- British-American Tobacco Co. v. HelveringSupreme Court of the United States · 1934
- Palm Beach Trust Co. v. CommissionerUnited States Tax Court · 1947
3Cited by8 opinions
- Stevens Bros. Foundation, Inc. v. CommissionerUnited States Tax Court · 1962
- Howkins v. CommissionerUnited States Tax Court · 1968
- Porto Rico Telephone Co. v. DescartesSupreme Court of Puerto Rico · 1957
- Lamm v. CommissionerUnited States Tax Court · 1975
- A. C. Monk & Co. v. CommissionerUnited States Tax Court · 1948
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