United States Industrial Chemicals, Inc. v. Johnson

RIFKIND, District Judge.

This suit for the refund of stock transfer tax in the amount of $15,107.65, paid by the plaintiff corporation, was tried to the court on a stipulation -of facts. It presents the following question: on the merger of a parent corporation with and into its subsidiary, the stock of which is wholly owned by the parent, where the outstanding capital stock of the parent is converted in accordance with the agreement of merger so as to become the capital stock of the subsidiary (which became the continuing corporation), is such a conversion subject to the stock transfer tax…