Casa de La Jolla Park, Inc. v. Commissioner
United States Tax Court
C, a California corporation, was organized by M, a Canadian citizen and U.S. nonresident, to market time-share units in a 15-unit condominium. M held a promissory note from C which bore interest at 28 percent. B, a California bank, collected the proceeds from the time-share sales for C. R, a Canadian bank, had made substantial loans to M. As collateral for these loans, R held M's stock in BR, a Canadian public company of which M was president.
Read the full summary
C, a California corporation, was organized by M, a Canadian citizen and U.S. nonresident, to market time-share units in a 15-unit condominium. M held a promissory note from C which bore interest at 28 percent. B, a California bank, collected the proceeds from the time-share sales for C. R, a Canadian bank, had made substantial loans to M. As collateral for these loans, R held M's stock in BR, a Canadian public company of which M was president. When BR went into the Canadian equivalent of Chapter 11 bankruptcy reorganization, R sought further assurance of collection of M's debts. Accordingly,…
1Opinion of the Court
WRIGHT, Judge:
By notice of deficiency dated June 1, 1987, respondent determined deficiencies in petitioner’s withholding of Federal income tax at source for taxable years ending December 31, 1982, and December 31, 1983, of $48,981 and $79,236, respectively.
The issues for decision are: (1) Whether petitioner was responsible under section 1441(a)1 for withholding tax on interest income of its nonresident alien sole shareholder, and if so, (2) whether petitioner is excepted from liability under section 1441(c)(1) for not withholding the tax because the interest income item at issue was…
2Cases cited7 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Green v. CommissionerUnited States Tax Court · 1972
- Irving A. Adler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1964
- Thomas W. Sowell and Lillian K. Sowell v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1962
- Tonopah & T. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1939
2 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Weiss v. Comm'rUnited States Tax Court · 2007
- Central De Gas De Chihuahua, S.A. v. CommissionerUnited States Tax Court · 1994
- Sherwin-Williams Co. Employee Health Plan Trust v. CommissionerUnited States Tax Court · 2000
- Brombach v. Comm'rUnited States Tax Court · 2012
- Austin v. Metro Development Group, LLCDistrict Court, M.D. Florida · 2021
16 more not listed; retrieve them via the Exa API.