Kraus v. Commissioner
United States Tax Court
Petitioners owned 100 percent of KRL, a corporation organized under the laws of Liechtenstein. On Dec. 12, 1962, just prior to the effective date of sec. 957, KRL issued preferred stock carrying 50 percent of the voting power in KRL to persons who did not qualify as United States shareholders within the meaning of sec. 951(b), Held: In view of the restrictions on the preferred stock, such as board approval required for transfer, redeemable at par on 3 months' notice, and…
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Petitioners owned 100 percent of KRL, a corporation organized under the laws of Liechtenstein. On Dec. 12, 1962, just prior to the effective date of sec. 957, KRL issued preferred stock carrying 50 percent of the voting power in KRL to persons who did not qualify as United States shareholders within the meaning of sec. 951(b), Held: In view of the restrictions on the preferred stock, such as board approval required for transfer, redeemable at par on 3 months' notice, and inability of new shareholders to break a deadlock, transfer of 50 percent of the voting power was a meaningless attempt to…
1Opinion of the Court
Sterrett, Judge:
Tbe Commissioner determined deficiencies in petitioners’ Federal income tax for tbe calendar year 1965 as follows:
Petitioner Docket No. Deficiency
Hans P. Kraus and Hanni Z. Kraus_ 6075-69 $132, 502. 85
Hans Peter Kraus, Jr_ 6076-69 29, 030. 05
Susan L. Kraus_ 6077-69 28, 467. 53
Eveline D. Rauber_ 6078-69 28, 616. 62
Herbert Gstalder and Barbara Gstalder_ 6079-69 22, 969. 79
Mary Ann Mitchell_ 6080-69 33, 299. 94
Concessions bave been made by petitioners Hans P. Kraus and Iianni Z. Kraus,2 leaving as tbe sole issue for our determination whether the proceeds from the sale of…
2Cases cited13 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Kean v. CommissionerUnited States Tax Court · 1968
8 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Weizmann Institute of Science v. NeschisDistrict Court, S.D. New York · 2002
- Estate of Weiskopf v. CommissionerUnited States Tax Court · 1975
- Arthur Cohn, and Michael Arthur Film Productions, a Company Doing Business Under the Laws of Liechtenstein v. Richard L. RosenfeldCourt of Appeals for the Ninth Circuit · 1984
- Framatome Connectors USA, Inc. v. Comm'rUnited States Tax Court · 2002
- Hans P. Kraus and Hanni Z. Kraus v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1974
18 more not listed; retrieve them via the Exa API.