Mars, Inc. v. Commissioner
United States Tax Court
Ps, which file a consolidated return, are the only partners of MIC, a French partnership. MIC "transformed" its juridical status pursuant to the laws of France from a French partnership into a French corporation (MICSA). The transformation of MIC into MICSA was motivated by business reasons.
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Ps, which file a consolidated return, are the only partners of MIC, a French partnership. MIC "transformed" its juridical status pursuant to the laws of France from a French partnership into a French corporation (MICSA). The transformation of MIC into MICSA was motivated by business reasons. Held, the transformation of MIC into MICSA was not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income tax within the meaning of sec. 367, I.R.C. 1954. Hershey Foods Corp. v. Commissioner, 76 T.C. 312 (1981), followed. Held, further, the transformation is not a…
1Opinion of the Court
OPINION
WILLIAMS, Judge: *
The Commissioner determined that the transformation of a foreign partnership into a foreign corporation was in pursuance of a plan having as one of its principal purposes the avoidance of Federal income tax within the meaning of section 367.1 Pursuant to section 7477, petitioners seek a declaratory judgment of this Court that respondent’s determination is not reasonable.2
This Court must decide whether the transformation, under French law, of petitioners’ French general partnership into a French corporation was in pursuance of a plan having as one of its principal…
2Cases cited8 opinions
- Consolo v. Federal Maritime CommissionSupreme Court of the United States · 1966
- United States v. Southwestern Cable Co.Supreme Court of the United States · 1968
- Rainwater v. United StatesSupreme Court of the United States · 1958
- Hillsboro National Bank v. CommissionerSupreme Court of the United States · 1983
- Dittler Bros., Inc. v. CommissionerUnited States Tax Court · 1979
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3Cited by16 opinions
- De Martino v. CommissionerUnited States Tax Court · 1987
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- Hospital Corp. of Am. v. CommissionerUnited States Tax Court · 1997
- Ford Motor Co. v. CommissionerUnited States Tax Court · 1994
- Pacific First Federal Sav. Bank v. CommissionerUnited States Tax Court · 1990
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