Prevention of Tax Avoidance: Preliminary Report of a Subcommittee of the Committee on Ways and Means Relaticce to Methods of Preventing the Avoidance and Evasion of the Internal Revenue Laws Together with Suggestions for the Simplification and Improvement Thereof. Printed for the Use of the Committee on Ways and Means

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U.S. Government Printing Office, 1933 - 42 pages
 

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Page 18 - ... (whether or not such stock was issued as a stock dividend) at such time and in such manner as to make the distribution and cancellation or redemption in whole or in part essentially equivalent to the distribution of a taxable dividend, the amount so distributed in redemption or cancellation of the stock, to the extent that it represents a distribution of earnings or profits accumulated after February 28, 1913, shall be treated as a taxable dividend.
Page 22 - ... years from the time the return was filed or within 2 years from the time the tax was paid, whichever of such periods expires the later. (2) If no return is filed, the claim for credit or refund of an overpayment must be filed by the taxpayer within 2 years from the time the tax was paid.
Page 9 - ... (d) OTHER DISTRIBUTIONS FROM CAPITAL. — If any distribution (not in partial or complete liquidation) made by a corporation to its shareholders is not out of increase in value of property accrued before March 1, 1913...
Page 17 - Act of 1976, the basis for determining gain or loss from sales of property acquired from a decedent generally was the value of the property at the date of the decedent's death. This was commonly referred to as a "step-up" in the basis of property at death.
Page 6 - Perhaps the most prevalent form of tax avoidance practiced by individuals with large Incomes is the scheme of the "incorporated pocketbook." That is. an individual forms a corporation and exchanges for its stock his personal holdings in stock, bonds, or other Income-producing property. By this means the Income from the property pa.vs corporation tax.
Page 19 - ... upon the obligee, or to reimburse the obligee for any portion of the tax, or to pay the interest without deduction for any tax which the obligor may be required or permitted to pay thereon, or to retain therefrom under any law of the United States...
Page 21 - In the case of a false or fraudulent return with intent to evade tax or of a failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.
Page 28 - There is no rule which permits a court to say that the measure of a tax for the privilege of doing business, where income from property is the basis, must be limited to that derived from property which may be strictly said to be actively used in the business.
Page 7 - The effect of this system recommended by your subcommittee is to provide for a tax which will be automatically levied upon the holding company without any necessity for proving a purpose to avoid surtaxes. It is believed that the majority of these corporations are formed for the sole purpose of avoiding the imposition of the surtax upon the stockholders.
Page 13 - Items directly attributable to wholly exempt income shall be allocated thereto, and items directly attributable to any class of taxable income shall be allocated to such taxable income. If an item is indirectly attributable both to taxable income and exempt income, a reasonable...

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