St. Clair v. United States
Opinion
lead Opinion
Yankwich, J.
The above-entitled cause, heretofore tried, argued and submitted, is now decided as follows:
Judgment will be for the defendant that plaintiff take nothing by the complaint. Costs to the defendant.
Comment
I am of the view that the Commissioner of Internal Revenue correctly interpreted St. Clair Estate Company in 1939 and 1940 as dividends taxable at ordinary rates, and not as partial distributions in liquidation.
The question is purely one of fact, to be determined from an examination of the unthe payments made to the plaintiff by the disputed record and facts in the case. Whatever conflicting attitudes the Commissioner took before the tax court regarding the nature of these payments, cannot alter the factual situation found to exist.
The important fact is that the resolution of the directors of the corporation dated December 23, 1938 and which proposed a liquidation of the corporation, and the meeting of the shareholders on December 23, 1938 which adopted a plan of liquidation, were stayed in their effect by the institution of proceedings by Cora St. Clair and the injunction issued on December 22, 1938.