United States Supreme Court Cases & Opinions

U.S. Supreme Court

Minnesota Tea Co. v. Helvering, 302 U.S. 609 (1938)

Minnesota Tea Co. v. Helvering

No. 106

Argued December 16, 1937

Decided January 17, 1938

302 U.S. 609

Syllabus

Money received by a corporation by exchange in a reorganization and turned over to its stockholders proportionally in pursuance of the plan of reorganization and subject to their agreement to assume and pay off indebtedness of the corporation of the same amount, which they thereupon fulfilled, was not distributed, within the meaning of § 112(d)(1) and (2) of the Revenue Act of 1928, and the gain included was therefore taxable to the corporation. P. 302 U. S. 612.

Page 302 U. S. 610

In purpose and effect, the transaction was to pay the corporation's debts, using the stockholders as a conduit.

89 F.2d 711 affirmed.

Certiorari, post, p. 665, to review a decree reversing a decision of the Board of Tax Appeals, 34 B.T.A. 145, overruling an income tax assessment. See s.c. 296 U. S. 296 U.S. 378.