Merrill Trust Co. v. Commissioner
United States Board of Tax Appeals
1. An amount credited by a taxpayer to a pension fund set up by it for the benefit of its employees may not be deducted as an ordinary and necessary business expense in the absence of evidence establishing that an enforceable trust was created. 2. In determining whether such a trust was created, the fact that the taxpayer, experienced in trust matters, deliberately refrained from making a trust agreement or declaration can not be casually regarded. 3. Testimony of a trust…
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1. An amount credited by a taxpayer to a pension fund set up by it for the benefit of its employees may not be deducted as an ordinary and necessary business expense in the absence of evidence establishing that an enforceable trust was created. 2. In determining whether such a trust was created, the fact that the taxpayer, experienced in trust matters, deliberately refrained from making a trust agreement or declaration can not be casually regarded. 3. Testimony of a trust officer of the taxpayer that he understood that other officers contemplated the pension fund to be permanent and…
1Opinion of the Court
MERRILL TRUST CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Merrill Trust Co. v. Commissioner
Docket No. 28802.
United States Board of Tax Appeals
21 B.T.A. 1409; 1931 BTA LEXIS 2193;
January 29, 1931, Promulgated
1. An amount credited by a taxpayer to a pension fund set up by it for the benefit of its employees may not be deducted as an ordinary and necessary business expense in the absence of evidence establishing that an enforceable trust was created.
2. In determining whether such a trust was created, the fact that the taxpayer, experienced in trust matters, deliberately…
2Cases cited2 opinions
- Fidelity & Deposit Co. of Md. v. United StatesSupreme Court of the United States · 1922
- Merrill Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1931