American Pacific Whaling Co. v. Commissioner

Petitioner seeks a review of the decision of the Board of Tax Appeals affirming the determination by the Commissioner of Internal Revenue of a deficiency in the income tax of petitioner for the year 1926 in the amount of $6,043.28.

*614 Petitioner, a South Dakota corporation whose name prior to October, 1926, was North Pacific Sea Products Company, and the American Pacific Whaling Company, a Washington corporation, hereinafter, called the Washington company, were affiliated and rendered consolidated income tax returns for the years 1923,1924, and 1925. For these years the operations of the Washington company resulted in a loss exceeding in amount the profit of petitioner, and at the end of the year 1925 there existed a net loss resulting from the operation of the Washington company for that year in an amount not less than $50,.000 and which exceeded the taxable net income of petitioner for 1926.

In December, 1925, the petitioner acquired all of the capital stock of the, Washington company, and as a part of' the same transaction took over all of the property and assets and liabilities of the Washington company. Thereafter during 1926 petitioner operated these properties together…