US LAWS, STATUTES and CODES : Chan Robles Virtual Law Library USA Supreme Court Decisions | Resolutions : Chan Robles Virtual Law Library

ChanRobles™ Virtual Law Library™ |™   
Main Index Repository of Laws, Statutes and Codes Latest Philippine Supreme Court Decisions Chan Robles Virtual Law Library Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Legal Resources United States Supreme Court Jurisprudence ChanRobles LawTube - Social Network

ChanRobles Internet Bar Review : DebtKollect Company, Inc. - Debt Collection Firm Intellectual Property Division - Chan Robles Law Firm

Philippine Supreme Court DecisionsChanRobles On-Line Bar Review

google search for chanrobles.comSearch for

REINECKE V. SMITH, 289 U. S. 172 (1933)

Subscribe to Cases that cite 289 U. S. 172 RSS feed for this section

U.S. Supreme Court

Reinecke v. Smith, 289 U.S. 172 (1933)

Reinecke v. Smith

No. 601

Argued March 22, 23, 1933

Decided April 10, 1933

289 U.S. 172


Section 219(g) of the Revenue Act of June 2, 1924, provides:

"Where the grantor of a trust has at any time during the taxable year, either alone or in conjunction with any person not a beneficiary of the trust, the power to revest in himself title to any part of the corpus of the trust, then the income of such part of the trust for such taxable year shall be included in computing the net income of the grantor."


1. A trustee is not a "beneficiary" of the trust within the meaning of the statute. P. 289 U. S. 174.

2. The provision is not arbitrarily retroactive, since it applies not to transactions consummated before its passage, but to the income accruing after the effective date of the Act, January 1, 1924. P. 289 U. S. 175.

3. The same considerations as to ownership and control affect the power to impose a tax on the transfer of the corpus and upon the income. P. 289 U. S. 175.

4. Where a settlor of a trust vests the power to modify or revoke it in himself and the trustee, the trustee is under no fiduciary obligation to the cestui que trust to refrain from exercising the power, and the situation in that regard is as though it were vested in the grantor jointly with a stranger to the trust. P. 289 U. S. 176.

5. To tax the income of such a trust to the settlor while he and the trustee jointly retain the power to revoke or modify the trust is consistent with the Fifth Amendment, and helps to make the income tax system complete and consistent and prevent evasions. P. 289 U. S. 177.

61 F.2d 324 reversed.

Certiorari, 288 U.S. 596, to review the affirmance of a recovery from the Collector of money collected as taxes from the respondents' testator. chanroblesvirtualawlibrary

Page 289 U. S. 173

ChanRobles™ LawTube

google search for Search for

Supreme Court Decisions Philippine Supreme Court DecisionsUS Supreme Court Decisions



Browse By ->> Volume


Browse By ->> Year


  Copyright © ChanRobles Publishing Company | Disclaimer | E-mail Restrictions
ChanRobles™ Virtual Law Library |™