United States Supreme Court Cases & Opinions

U.S. Supreme Court

Wisconsin Gas & Electric Co. v. United States, 322 U.S. 526 (1944)

Wisconsin Gas & Electric Co. v. United States

No. 565

Argued March 10, 1944

Decided May 29, 1944

322 U.S. 526

Syllabus

1. Payment made by a corporation of the tax levied by the Wisconsin Privilege Dividend Tax Act, held, for federal income tax purposes, not deductible from gross income of the corporation either under § 23(c) or § 23(d) of the Revenue Act of 1934. Pp. 322 U. S. 529, 322 U. S. 531.

2. The payments were not deductible under § 23(c) as "taxes paid," since, within the meaning of applicable Treasury Regulations, the tax was not "imposed" on the corporation. P. 322 U. S. 529.

3. Nor were the payments deductible under § 23(d) as

"taxes imposed upon a shareholder of the corporation upon his interest as shareholder which are paid by the corporation without reimbursement from the shareholder,"

since, within the meaning of the section, the tax was not "paid by the corporation without reimbursement from the shareholder." P. 322 U. S. 531.

138 F.2d 597 affirmed.

Certiorari, 321 U.S. 757, to review a judgment for the company, 46 F.Supp. 929, in a suit for a refund of federal income tax.