Superior Beverage Co. v. Commissioner
United States Tax Court
Held: Stock owned by the minority shareholder-employees of three corporations constituted "excluded stock" under sec. 1563(c)(2)(B)(ii), I.R.C. 1954, because identical provisions contained in the bylaws of each corporation which, in substance, prohibited the sale of any outstanding stock without first offering it to the company and thereafter to the other shareholders in the event that the company did not exercise its option to purchase (1) substantially restricted or…
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Held: Stock owned by the minority shareholder-employees of three corporations constituted "excluded stock" under sec. 1563(c)(2)(B)(ii), I.R.C. 1954, because identical provisions contained in the bylaws of each corporation which, in substance, prohibited the sale of any outstanding stock without first offering it to the company and thereafter to the other shareholders in the event that the company did not exercise its option to purchase (1) substantially restricted or limited the rights of the minority shareholder-employees to dispose of their stock ( Barton Naphtha Co., 56 T.C. 107); and (2)…
1Opinion of the Court
OPINION
Raum, Judge:
Section 1561(a), I.R.C. 1954,4 provides that if a group of corporations constitutes a “controlled group of corporations” on a December 31, the component members of such group are entitled to only one surtax exemption of $25,000 to be apportioned among them for their respective taxable years which include such December 31. The Commissioner contends that petitioners constituted a “controlled group of corporations” in accordance with section 1563 (a) (2),5 which in substance defines that term to include a “brother-sister controlled group,” and that definition in turn is…
2Cases cited13 opinions
- Pepper v. LittonSupreme Court of the United States · 1939
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Jones v. H. F. Ahmanson & Co.California Supreme Court · 1969
- United States v. ByrumSupreme Court of the United States · 1972
8 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Mid-America Industries, Inc., a Delaware Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1973
- Superior Beverage Company of Marysville, Inc. v. Commissioner of Internal Revenue, Superior Beverage Company of Redding and Red Bluff, Inc. v. Commissioner of Internal Revenue, Superior Beverage Company of Chico, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Tribune Pub. Co. v. CommissionerUnited States Tax Court · 1982
- Superior Beverage Co. v. CommissionerCourt of Appeals for the Ninth Circuit · 1975
- Superior Beverage Co. v. CommissionerUnited States Tax Court · 1972
2 more not listed; retrieve them via the Exa API.