Minnesota Tea Co. v. Helvering, 302 U.S. 609 (1938)
U.S. Supreme CourtMinnesota Tea Co. v. Helvering, 302 U.S. 609 (1938)
Minnesota Tea Co. v. Helvering
Argued December 16, 1937
Decided January 17, 1938
302 U.S. 609
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.
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.