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Gregory v. Helvering, 293 U.S. 465 (1935)
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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.
Gregory v. Helvering, 293 U.S. 465 (1935)
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Gregory v. Helvering No. 127 Argued December 4, 5, 1934 Decided January 7, 1935 293 U.S. 465
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SECOND CIRCUIT
Syllabus
1. A corporation wholly owned by a taxpayer transferred 1000 shares of stock in another corporation held by it among its assets to a new corporation, which thereupon issued all of its shares to the taxpayer. Within a few days, the new corporation was dissolved and was liquidated by the distribution of the 1000 shares to the taxpayer, who immediately sold them for her individual profit. No other business was transacted, or intended to be transacted, by the new corporation. The whole plan was designed to conform to § 112 of the Revenue Act of 1928 as a "reorganization," but for the sole purpose of transferring the shares in question to the taxpayer, with a resulting tax liability less than that which would have ensued from a direct transfer by way of dividend. Held: while the plan conformed to the terms of the statute, there was no reorganization within the intent of the statute. P. 468.
2. By means which the law permits, a taxpayer has the right to decrease the amount of what otherwise would be his taxes, or altogether to avoid them. P. 469.
3. The rule which excludes from consideration the motive of tax avoidance is not pertinent to the situation here, because the transaction upon its face lies outside the plain intent of the statute. P. 470.
69 F.2d 809 affirmed.
Certiorari to review a judgment reversing a decision of the Board of Tax Appeals, 27 B.T.A. 223, which set aside an order of the Commissioner determining a deficiency in income tax.
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Chicago: U.S. Supreme Court, "Syllabus," Gregory v. Helvering, 293 U.S. 465 (1935) in 293 U.S. 465 293 U.S. 466–293 U.S. 467. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=MW7RKRLQKWYJVI5.
MLA: U.S. Supreme Court. "Syllabus." Gregory v. Helvering, 293 U.S. 465 (1935), in 293 U.S. 465, pp. 293 U.S. 466–293 U.S. 467. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=MW7RKRLQKWYJVI5.
Harvard: U.S. Supreme Court, 'Syllabus' in Gregory v. Helvering, 293 U.S. 465 (1935). cited in 1935, 293 U.S. 465, pp.293 U.S. 466–293 U.S. 467. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=MW7RKRLQKWYJVI5.
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