Source: https://www.law.cornell.edu/supremecourt/text/293/465
Timestamp: 2019-04-22 20:09:43+00:00

Document:
GREGORY v. HELVERING, Commissioner of Internal Revenue.
Argued: Dec. 4, 5, 1934.
Mr. Hugh Satterlee, of Washington, D.C., for petitioner.
The Attorney General and Mr. J. Crawford Biggs, Sol. Gen., of Washington, D.C., for respondent.
The Commissioner of Internal Revenue, being of opinion that the reorganization attempted was without substance and must be disregarded, held that petitioner was liable for a tax as though the United corporation had paid her a dividend consisting of the amount realized from the sale of the Monitor shares. In a proceeding before the Board of Tax Appeals, that body rejected the commissioner's view and upheld that of petitioner. 27 B.T.A. 223. Upon a review of the latter decision, the Circuit Court of Appeals sustained the commissioner and reversed the board, holding that there had been no 'reorganization' within the meaning of the statute. 69 F.(2d) 809. Petitioner applied to this court for a writ of certiorari, which the government, considering the question one of importance, did not oppose. We granted the writ. 293 U.S. 538, 55 S.Ct. 82, 79 L.Ed. -.
When subdivision (B) speaks of a transfer of assets by one corporation to another, it means a transfer made 'in pursuance of a plan of reorganization' (section 112(g) of corporate business; and not a transfer of assets by one corporation to another in pursuance of a plan having no relation to the business of either, as plainly is the case here. Putting aside, then, the question of motive in respect of taxation altogether, and fixing the character of the proceeding by what actually occurred, what do we find? Simply an operation having no business or corporate purposea mere device which put on the form of a corporate reorganization as a disguise for concealing its real character, and the sole object and accomplishment of which was the consummation of a preconceived plan, not to reorganize a business or any part of a business, but to transfer a parcel of corporate shares to the petitioner. No doubt, a new and valid corporation was created. But that corporation was nothing more than a contrivance to the end last described. It was brought into existence for no other purpose; it performed, as it was intended from the beginning it should perform, no other function. When that limited function had been exercised, it immediately was put to death.
Harold T. PAULSEN et ux., Petitioners v. COMMISSIONER OF INTERNAL REVENUE.
COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. NATIONAL ALFALFA DEHYDRATING AND MILLING COMPANY.
UNITED STATES v. SILK et al. HARRISON v. GREYVAN LINES, Inc.
BAZLEY v. COMMISSIONER OF INTERNAL REVENUE. ADAMS v. SAME.
UNITED STATES, Petitioner, v. CONSUMER LIFE INSURANCE COMPANY. FIRST RAILROAD & BANKING COMPANY OF GEORGIA, Petitioner, v. UNITED STATES. UNITED STATES, Petitioner, v. PENN SECURITY LIFE INSURANCE COMPANY.
HELVERING, Commissioner of Internal Revenue, v. GOWRAN.
MINNESOTA TEA CO. v. HELVERING, Commissioner of Internal Revenue.
HELVERING, Com'r of Internal Revenue, v. NATIONAL GROCERY CO.
HIGGINS, Collector of Internal Revenue for the Third District of New York, v. SMITH.
GRIFFITHS v. HELVERING, Com'r of Internal Revenue.
HELVERING, Com'r of Internal Revenue, v. ALABAMA ASPHALTIC LIMESTONE CO.
MOLINE PROPERTIES, Inc., v. COMMISSIONER OF INTERNAL REVENUE.
HELVERING, Commissioner of Internal Revenue, v. MINNESOTA TEA CO. SAME v. PETERSON (two cases).
The HANOVER BANK, Executor, et al., Petitioner, v. COMMISSIONER OF INTERNAL REVENUE.
NATIONAL CARBIDE CORPORATION v. COMMISSIONER OF INTERNAL REVENUE. AIR REDUCTION SALES CO. v. COMMISSIONER OF INTERNAL REVENUE. PURE CARBONIC, Inc. v. COMMISSIONER OF INTERNAL REVENUE.
Karl F. KNETSCH and Eva Fay Knetsch, Petitioners, v. UNITED STATES.
JOHN KELLEY CO. v. COMMISSIONER OF INTERNAL REVENUE. TALBOT MILL v. SAME.
LUSTHAUS v. COMMISSIONER OF INTERNAL REVENUE.

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