(DOWNLOAD) "Squibb v. Helvering" by United States Court of Appeals for the Second Circuit ~ eBook PDF Kindle ePub Free

eBook details

Title: Squibb v. Helvering
Author : United States Court of Appeals for the Second Circuit
Release Date : January 12, 1938
Genre: Law,Books,Professional & Technical,
Pages : * pages
Size : 53 KB

Description

This appeal is from an order, assessing a deficiency on the taxpayers income tax return for the year 1932. The taxpayer is a large manufacturer of drugs and other chemicals, which in the year 1929 devised a plan to allow its customers to share in its profits. They were to take stock in a corporation organized by the taxpayer under the name of Squibb Plan, Inc., whose assets were to consist of shares of stock of the taxpayer, bought by it and sold to Squibb Plan, Inc. at $50 a share - a price below its market value at the time, but higher than in 1932. The taxpayer, as required by its contract, continued to buy its shares as they fell, and in 1932, sold a number of them to Squibb Plan, Inc. Because of the fall it realized a substantial profit, which the Commissioner included in its income for that year and on which he calculated a deficiency. The taxpayer appealed to the Board and then to this court from the Boards affirmance.