United States Supreme Court Cases & Opinions

U.S. Supreme Court

Mason v. Routzahn, 275 U.S. 175 (1927)

Mason v. Routzahn

No. 152

Argued October 6, 1927

Decided November 21, 1927

275 U.S. 175

Syllabus

1. Dividends paid in 1917, when there were net profits made in 1916 sufficient for the purpose and no net profits had been made in 1917 prior to the payment, are taxable to the shareholder at the 1916 rate, though profits were accumulated by the corporation in 1917 subsequently to the payment of the dividends. Revenue Act 1916, § 31(b) as amended 1917. See Edwards v. Douglas, 269 U. S. 204. P. 275 U. S. 177.

2. The date of payment, not the date of declaration, of the dividend is the date of distribution within the meaning of § 31(b), supra. P. 275 U. S. 178.

13 F.2d 702 reversed.

Certiorari, 273 U.S. 687, to a judgment of the, circuit court of appeals which reversed a judgment rendered by the district court, 8 F.2d 56, in favor of Mason, plaintiff in an action to recover money paid to the Collector, under protest, as a tax on dividends.

Page 275 U. S. 176