National Bank of Commerce v. Commissioner
United States Tax Court
Petitioner, a national banking corporation, in its regular course of business issued interest bearing nonnegotiable certificates of deposit which were not subject to check and with maturity dates of either 6 or 12 months. In its regular course of business petitioner accepted savings deposits evidenced by passbooks which deposits were not subject to check and the withdrawal of which petitioner required 60 days notice.
Read the full summary
Petitioner, a national banking corporation, in its regular course of business issued interest bearing nonnegotiable certificates of deposit which were not subject to check and with maturity dates of either 6 or 12 months. In its regular course of business petitioner accepted savings deposits evidenced by passbooks which deposits were not subject to check and the withdrawal of which petitioner required 60 days notice. Held, petitioner's outstanding indebtedness evidenced by the certificates of deposit and savings passbooks is not includible in borrowed capital under section 719 (a) (1) of the…
1Opinion of the Court
OPINION.
Black, -Judge:
The only issues we have to decide in this proceeding are whether petitioner is entitled under section 719 (a) (1) of the Internal Revenue Code,1 .to include in borrowed invested capital for 1943, and 1945, 50 per cent of (1) its daily average amount of certificates of deposits outstanding and (2) its daily average savings deposits evidenced by passbooks.
The Court of Appeals for the Eighth Circuit has decided that a time certificate of deposit is not a “certificate of indebtedness” includible in the borrowed invested capital of a banking corporation within the meaning of…
2Cases cited11 opinions
- Johnson v. Southern Pacific Co.Supreme Court of the United States · 1904
- Wetmore v. MarkoeSupreme Court of the United States · 1904
- Journal Publishing Co. v. CommissionerUnited States Tax Court · 1944
- West Constr. Co. v. CommissionerUnited States Tax Court · 1946
- Commissioner of Internal Revenue v. Ames Trust & Sav. BankCourt of Appeals for the Eighth Circuit · 1950
6 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Capital Nat'l Bank v. CommissionerUnited States Tax Court · 1951
- United States v. City Loan and Savings CompanyCourt of Appeals for the Sixth Circuit · 1961
- Valley Morris Plan v. CommissionerUnited States Tax Court · 1959
- Jackson Finance & Thrift Co. v. CommissionerUnited States Tax Court · 1957
- La Salle National Bank v. CommissionerUnited States Tax Court · 1954
15 more not listed; retrieve them via the Exa API.