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

ChanRobles™ Virtual Law Library™ | chanrobles.com™   
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 : www.chanroblesbar.com 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 www.chanrobles.com


HELVERING V. MINNESOTA TEA CO., 296 U. S. 378 (1935)

Subscribe to Cases that cite 296 U. S. 378 RSS feed for this section

U.S. Supreme Court

Helvering v. Minnesota Tea Co., 296 U.S. 378 (1935)

Helvering v. Minnesota Tea Co.,

No. 174

Argued November 19, 1935

Decided December 16, 1935*

296 U.S. 378

Syllabus

1. A corporation transferred to another all of its assets in exchange for a large sum in cash and 18,000 shares of common stock of the transferee corporation; it retained the stock and distributed the cash to its own stockholders, who assumed certain of its debts.

Held:

(1) The transaction was a "reorganization" under § 112(i)(1)(A) of the Revenue Act of 1928, which embraces within the meaning of the term reorganization "a merger or consolidation (including the acquisition by one corporation of . . . substantially all of the properties of another corporation)," and no taxable gain was recognizable under the Act. P. 296 U. S. 382.

(2) That the relationship of the taxpayer to the assets transferred was substantially changed does not prevent the transaction from constituting a reorganization under the Act. P. 296 U. S. 386.

(3) That a large amount in cash was received by the transferor was permissible so long as it received also an interest in the affairs of the transferee which represented a material part of the value of the transferred assets. P. 296 U. S. 386.

2. Clause (B) of § 112(i)(1) of the Revenue Act of 1928, under which it is essential to the "reorganization" there defined that, immediately after the transfer, the transferor or its stockholders be in control of the transferee corporation does not narrow the scope of Clause (A). P. 296 U. S. 384.

3. Dissolution of the transferor corporation is not essential to a reorganization under the Act. P. 296 U. S. 386.

4. The construction here given the Act is supported by Treasury Regulations long enforced. P. 296 U. S. 384.

5. To constitute a reorganization under Clause (A) of the section, it is essential that the interest acquired by the transferor in chanroblesvirtualawlibrary

Page 296 U. S. 379

the affairs of the transferee corporation be definite and material; it must represent a substantial part of the value of the thing transferred. P. 296 U. S. 385.

76 F.2d 797, id., 806, affirmed.

Certiorari to review judgments reversing a decision of the Board of Tax Appeals, 28 B.T.A. 591, in three cases involving income taxes.





Back
ChanRobles™ LawTube

google search for chanrobles.com Search for www.chanrobles.com


Supreme Court Decisions Philippine Supreme Court DecisionsUS Supreme Court Decisions



www.chanrobles.us




QUICK SEARCH

cralaw

Browse By ->> Volume


cralaw

Browse By ->> Year


cralaw

  Copyright © ChanRobles Publishing Company | Disclaimer | E-mail Restrictions
ChanRobles™ Virtual Law Library | chanrobles.com™
 
RED