Case Name: Appeal of IMPERIAL DEVELOPMENT CO.
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-02-13
Citations: 3 B.T.A. 713
Docket Number: Docket No. 4183
Parties: Appeal of IMPERIAL DEVELOPMENT CO.
Judges: Before Phillips and Trammell.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 3
Pages: 713–714

Head Matter:
Appeal of IMPERIAL DEVELOPMENT CO.
Docket No. 4183.
Submitted November 11, 1925.
Decided February 13, 1926.
Frank G. Butts, O. P. A., for the taxpayer.
Ward Loveless, Esq., for the Commissioner.
Before Phillips and Trammell.

Opinion:
OPINION.
Phillips
: The Commissioner determined taxpayer's profits tax for 1917 under the provisions of section 203 (a) and (c) of the Revenue Act of 1917. Taxpayer claims that such tax should have been computed under the provisions of section 205, on the ground that the taxpayer had no net income from the trade or business during the pre-war period. Section 205 (a) (1) refers specifically to domestic corporations, while taxpayer is a foreign corporation. Taxpayer claims, however, that it falls within section 203 (d), in that it is impossible satisfactorily to determine the average amount of the annual net income of the trade or business during the pre-war period, and that, in such a case, a foreign corporation may fall within the provisions of section 205 (a) (1). Without passing upon the question raised by the taxpayer, it is sufficient to point out that there is a marked difference between inability to determine the average amount of the annual net income of the trade or business during the pre-war period and the determination that during the pre-war period the taxpayer had no net income from the trade or business. The taxpayer has not shown that its average net income for the pre-war period can not be determined, and it does not fall within the provisions of section 203 (d).