Oil Base, Inc. v. Commissioner of Internal Revenue

MERRILL, Circuit Judge.

Petitioner as taxpayer seeks review of a Tax Court decision respecting income taxes for the taxpayer’s fiscal year ending September 30, 1959. The case involves allocation of income between the taxpayer and its subsidiary, a wholly owned Venezuela corporation, Oil Base de Venezuela, C. A. (hereinafter referred to as “Obvenca”), which, during the year in question, served as taxpayer’s foreign sales representative.

The income derived by Obvenca was attributable to commissions and discounts allowed by the taxpayer pursuant to an agreement between the two companies. Finding…