OCR Text |
Show COURT PASSES ON INCOME TAX LAW WASHINGTON, .March IS. A Judgment Judg-ment Id favor of C. W. Phrlli.. stockholder stock-holder of the K. I. DuPont de Nemours Sc o., w returned by fh I'nlted Stale court of claims In his suit to recover $5(57 ...Rd to hmv been wrongfully collected as income Ui In I91 when the company waa reorganised. reorgan-ised. The suit was regarded aa a test ratte. said to Involve abitement by the ltovernmnt of $1 8.000.000 In Income taxeti assessed on distribution of cor-porste cor-porste stock. The company, a New Jersey corporation, corpora-tion, with assets of $29,000,000. waa shown to have created In 1916 a Iea-, war corporation, capitalized at 1120. 000.000 M which It transferred Its an-1 sets, taking In exchange one share of Ha own stock and two hares of the new common siitck of the Ie1aware company for each shxre of the New i Jersey company original stock. Income ta off trials held that aix-sevenths aix-sevenths of the stockholders' Interest j was converted Into taxable Income, hut stor-kholders contended no income was created and that the government waa Hf-king to tax actual capital. |