European Naval Stores Co. v. Commissioner
United States Tax Court
Petitioner, a Belgian corporation, purchased naval stores in the United States in 1939. Delivery of the goods was never accomplished, due to the placing of embargoes early in 1940 and the occupation of Belgium by the German armies in May of 1940. The seller placed the goods in public storage until March of 1942, when, without petitioner's knowledge or consent, the seller resold the stores to itself, crediting the profit from that sale to the account of petitioner.
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Petitioner, a Belgian corporation, purchased naval stores in the United States in 1939. Delivery of the goods was never accomplished, due to the placing of embargoes early in 1940 and the occupation of Belgium by the German armies in May of 1940. The seller placed the goods in public storage until March of 1942, when, without petitioner's knowledge or consent, the seller resold the stores to itself, crediting the profit from that sale to the account of petitioner. Held, petitioner was a nonresident corporation not engaged in a trade or business within the United States during the taxable year…
1Opinion of the Court
OPINION.
Arundell, Judge-.
The principal question before the Court is whether the petitioner, a foreign corporation, was engaged in a trade or business within the United States during the calendar year 1942 and therefore taxable under the provisions of section 231 (b) of the Internal Revenue Code. Section 231 of the code and section 29.231-1 of Treasury Regulations 111, material to the question presented herein, are set out below.1 The deficiency notice served on petitioner in the present case stated, “It is held that you were a resident foreign corporation engaged in a trade or business within…
2Cases cited3 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Edwards v. Chile Copper Co.Supreme Court of the United States · 1926
- Lewellyn v. Pittsburgh, B. & L. E. R.Court of Appeals for the Third Circuit · 1915
3Cited by14 opinions
- United States v. BalanovskiCourt of Appeals for the Second Circuit · 1956
- Linen Thread Co. v. CommissionerUnited States Tax Court · 1950
- United States v. BalanovskiCourt of Appeals for the Second Circuit · 1956
- 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
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