Hershey Foods Corp. v. Commissioner
United States Tax Court
Petitioner proposed to transfer its historically unprofitable Canadian branch to a Canadian corporation in an exchange designed to fall within sec. 351, I.R.C. 1954. Respondent determined the transfer has a principal tax-avoidance purpose within the meaning of sec. 367 on the ground the branch's past losses have reduced petitioner's worldwide taxable income while future branch profits will not be subject to Federal income tax. Held, respondent's determination is unreasonable.
1Opinion of the Court
OPINION
Fay, Judge'.
Respondent determined petitioner is not entitled to a favorable ruling under section 3671 unless petitioner agrees to include certain amounts in income. Having exhausted its administrative remedies as required by section 7477(b)(2), petitioner has timely invoked the jurisdiction of this Court for a declaratory judgment pursuant to section 7477(a). The issue is whether respondent’s determination is reasonable.2
This case was submitted for decision on the stipulated administrative record under Rule 122, Tax Court Rules of Practice and Procedure, and oral arguments were heard.…
2Cases cited11 opinions
- Consolo v. Federal Maritime CommissionSupreme Court of the United States · 1966
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. LewisSupreme Court of the United States · 1951
- Alice Phelan Sullivan Corporation, a California Corporation v. The United StatesUnited States Court of Claims · 1967
- Nash v. United StatesSupreme Court of the United States · 1970
6 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Tobler v. DerwinskiUnited States Court of Appeals for Veterans Claims · 1991
- Hospital Corp. of America v. CommissionerUnited States Tax Court · 1983
- Mars, Inc. v. CommissionerUnited States Tax Court · 1987
- Pitcher v. CommissionerUnited States Tax Court · 1985
- Sherwood Properties v. CommissionerUnited States Tax Court · 1987
8 more not listed; retrieve them via the Exa API.