Texasgulf, Inc. v. Commissioner
United States Tax Court
Under the Ontario Mining Tax (OMT), mine operators are generally liable for a tax on gross receipts less deductions for several expenses and a processing allowance. P paid the OMT and claimed a foreign tax credit under sec. 901, I.R.C. P and R agree that sec. 1.901-2, Income Tax Regs., applies to the years at issue.
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Under the Ontario Mining Tax (OMT), mine operators are generally liable for a tax on gross receipts less deductions for several expenses and a processing allowance. P paid the OMT and claimed a foreign tax credit under sec. 901, I.R.C. P and R agree that sec. 1.901-2, Income Tax Regs., applies to the years at issue. R concedes that the OMT is a tax and that it meets realization and gross income requirements imposed by those regulations but contends that the OMT does not meet the net income requirement. Sec. 1.901-2(b)(4), Income Tax Regs. A foreign tax meets the net income requirement if it…
1Opinion of the Court
Colvin, Judge:
Respondent determined deficiencies in petitioner’s Federal income tax of $563,127 for 1979, $10,998,770 for 1980, and $1,794,073 for 1981. The sole issue for decision is whether the Ontario Mining Tax (OMT) is creditable under section 901. We hold that it is.
Unless otherwise indicated, section references are to the Internal Revenue Code in effect for the years in issue. Rule references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
A. Petitioner and Kidd Creek Mine
Petitioner was a Delaware corporation…
2Cases cited15 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Burnet v. Chicago Portrait Co.Supreme Court of the United States · 1932
- Estate of Cora R. Fitts, Deceased, J. Russel Fitts and Frank E. Tyler, Co-Executors v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1956
- IT&S of Iowa, Inc. v. CommissionerUnited States Tax Court · 1991
10 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Texasgulf, Inc., and Subsidiaries, as Successor in Interest to Texasgulf, Inc. And Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1999
- Exxon Corp. v. CommissionerUnited States Tax Court · 1999
- PPL Corp. & Subsidiaries v. CommissionerUnited States Tax Court · 2010
- Exxon Corp. v. CommissionerUnited States Tax Court · 1999
- Exxon Corporation v. CommissionerUnited States Tax Court · 1999
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