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United States v. Cumberland Pub. Svc. Co., 338 U.S. 451 (1950)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
United States v. Cumberland Pub. Svc. Co., 338 U.S. 451 (1950)
United States v. Cumberland Pub. Svc. Co. No. 214 Argued December 12, 1949 Decided January 9, 1950 338 U.S. 451
CERTIORARI TO THE COURT OF CLAIMS
Syllabus
A closely held corporation made to its shareholders a distribution of assets in kind and was dissolved. The stockholders transferred the property to a purchaser. In an action by the corporation for refund of a capital gains tax on the sale, the Court of Claims found, upon proper supporting evidence, that the sale was made by the shareholders, rather than by the corporation, and entered judgment for the corporation.
Held: the record does not require a finding that the sale was made by the corporation, rather than by the shareholders, and the judgment of the Court of Claims is affirmed. Commissioner v. Court Holding Co., 324 U.S. 331, distinguished. Pp. 452-456.
(a) A corporation may liquidate or dissolve without subjecting itself to the corporate gains tax, even though a primary motive is to avoid the burden of corporate taxation. P. 455.
(b) In this case, it was for the Court of Claims (the trial court), upon consideration of the entire transaction, to determine the factual category in which the transaction belonged. P. 456.
113 Ct.Cl. 460, 83 F.Supp. 843, affirmed.
In an action for refund of a federal tax, the Court of Claims gave judgment for the plaintiff. 113 Ct.Cl. 460, 83 F.Supp. 843. This Court granted certiorari. 338 U.S. 846. Affirmed, p. 456.
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Chicago: U.S. Supreme Court, "Syllabus," United States v. Cumberland Pub. Svc. Co., 338 U.S. 451 (1950) in 338 U.S. 451 338 U.S. 452. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=IRW3IJS76L9T4IH.
MLA: U.S. Supreme Court. "Syllabus." United States v. Cumberland Pub. Svc. Co., 338 U.S. 451 (1950), in 338 U.S. 451, page 338 U.S. 452. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=IRW3IJS76L9T4IH.
Harvard: U.S. Supreme Court, 'Syllabus' in United States v. Cumberland Pub. Svc. Co., 338 U.S. 451 (1950). cited in 1950, 338 U.S. 451, pp.338 U.S. 452. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=IRW3IJS76L9T4IH.
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