Law Commons^™

The Taxation Of Nonshareholder Contributions To Capital: An Economic Analysis, Thomas L. Evans

Vanderbilt Law Review

Every year, billions of dollars are contributed to corporations by persons who are neither owners nor shareholders of those corporations. These contributions, categorized under the income tax laws as "non- shareholder contributions to capital," play an important economic role in subsidizing the construction of new factories and other improvements to the nation's infrastructure.

This Article concerns the federal income tax treatment of the two principal categories of nonshareholder contributions to capital, which together encompass the great majority of these transactions. The first category consists of contributions made for the purpose of obtaining economic development. Typically, this occurs when governments and …

The Taxation Of Defamation Recoveries: Toward Establishing Its Reputation, David D. Willoughby

Vanderbilt Law Review

This Recent Development advocates that courts adopt the Ninth Circuit's Roemer approach to determine the nature of dam-ages for injury to reputation by focusing on the attack rather than the effects of the injury, but suggests that courts replace the Ninth Circuit's reliance on state law with a uniform standard. Part II of this Recent Development traces the evolution of the personal in-jury exemption and the confusing judicial treatment that courts have accorded economic damages which result from personal injuries. Part III of this Recent Development discusses the most recent treatment of economic damages by examining the Tax Court's decisions …

The Taxation Of Interest -- Free Loans, James T. O'Hare

Vanderbilt Law Review

The dramatic rise in interest rates in the United States in the past few years has given added significance to the uncertain tax consequences of interest-free loans made between family members, between corporations and shareholders, and between affiliated corporations. Such loans can create a variety of tax problems depending on the relationship of the parties. An interest-free loan from one family member to another may constitute a gift equal in value to the use of the money loaned or even to the amount of the entire principal. A corporation that makes an interest-free loan to one of its shareholders not …

Recent Cases, Journal Staff

Vanderbilt Law Review

Antitrust Law--Robinson-Patman Act--To Satisfy the "In Commerce" Requirement of Section 2(a) at Least One of the Allegedly Discriminatory Sales in a Secondary-Line Case Must Cross a State Line

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Constitutional Law--Equal Protection--Exclusion of Pregnancy-Related Disabilities from State Salary Compensation Insurance Program Denies Equal Protection to Pregnant Employees

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Criminal Procedure--Grand Juries--Exclusionary Rule in Search and Seizure Cases Does Not Apply to Grand Jury Proceedings

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Securities Regulation-Rule 10b-5--Plaintiffs Who Are Neither Purchasers nor Sellers of Securities May Recover Under Rule 10b-5 if Injured in Their Capacity as Investors as a Direct Consequence of Fraud in Connection with a Securities Transaction …

Recent Cases, Author Unidentified

Vanderbilt Law Review

Civil Procedure--Service of Process--California Long-Arm Statutes Abrogate State's Immunity Doctrine

Seeking recovery of money owed him by defendant European corporations;' plaintiff brought suit in a California state court.While attending federal district court in Florida for the sole purpose of giving a deposition in a trademark infringement suit instituted by one of the corporations, defendants' representative was personally served with process in the California action on behalf of himself and the defendant corporations. Defendants moved to quash service of process on the ground that the immunity rule prohibited service of civil process upon a witness in attendance in a court outside …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Injunctions--Contempt Power--Citation Proper Against Nonparty Who Violates Court Order in School Desegregation Case

Whether an injunction or other order binds one not a party to the underlying suit or proceeding so that he may be held in contempt for violation is a question that always has troubled the courts. Some early cases purported to announce a sweeping and apparently absolute rule--that an injunction or other order does not bind nonparties. The principle underlying this rule is that due process forbids a court to adjudicate the legal rights and relationships of a person who has not had the opportunity to be …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust--Treble Damage Actions--Private Litigant Whose Injury Was Reasonably Foreseeable Has Standing To Sue

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Constitutional Law--Free Exercise of Religion--First Amendment Violated by Compulsory Education Statute that Prevents a Parent from Raising His Children According to His Religious Beliefs

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Constitutional Law--Immunity Statutes-Section 201 of Organized Crime Control Act of 1970, Which Provides Only Use and Fruits Immunity, Violates Fifth Amendment

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Constitutional Law-Search and Seizure--AFDC Caseworker's Visit to Home of Nonconsenting Welfare Recipient Not Prohibited by Fourth Amendment

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Consumer Protection Law-Standing -United States Has Standing To Seek Injunction Against Practice of Obtaining Default Judgments Through False Affidavits Certifying Service …

Book Notes, Law Review Staff

Vanderbilt Law Review

The Child Savers: The Invention of Delinquency By Anthony M. Platt Chicago: University of Chicago Press, 1969. Pp. ix, 202.$8.50.

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Juvenile Delinquency and Urban Areas (rev. ed.) By Clifford R.Shaw & Henry D. McKay Chicago: University of Chicago Press,1969. Pp. 394.

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The Positive School of Criminology Edited by Stanley E. Grupp Pittsburgh: University of Pittsburgh Press, 1968. Pp. vi, 114. $5.95.

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State and Local Tax Problems Edited by Harry L. Johnson Knoxville: University of Tennessee Press, 1969. Pp. xiii, 190. $7.50.

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Tension in the Cities By James A. Bayton Philadelphia: Chilton Book Co., 1969. Pp. x, …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust-Informal Price--Information Exchanges Held Violative of Sherman Act

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Conflict of Laws--"Contacts" Doctrine Applied to Supplement Federal Maritime Law in Diversity Action

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Constitutional Law--Fourteenth Amendment Prohibits Extended Postponement of Parole Consideration for State Inmate When Made on the Basis of an Unreliable Factual Determination

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Labor Law--Collective Bargaining-Employer May Not Enforce Collective Bargaining Agreement Provision Embodying Union Waiver of Employee's Right to Solicit Against That Union

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Labor Law-Remedies--NLRB May Order Retroactive Payment of Fringe Benefits Where Employer Wrongfully Refuses to Sign Collective Bargaining Agreement

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Religious Societies--First Amendment Prohibits Civil Courts From Determining Doctrinal Questions in Resolving Church …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Corporations--Equity--Specific Performance of Stock Option Granted Because of Tax Advantage Feature of Option

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Property--Landlord-Tenant--Rabbinical Court Establishes Far-Reaching Standard of Landlords' Obligations to Tenants

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Taxation--Federal Estate Taxation--Under Treasury Regulation Section 20.2031-8(b), Value of Shares in Mutual Funds Is Public Offering Price on Date of Death Rather Than Redemption Price

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Taxation--Mineral Rights--Carried Interest Loses Deduction for Depletion, Depreciation, and Intangible Drilling Costs During Recoupment

Recent Cases, Law Review Staff

Vanderbilt Law Review

Conflict of Laws--Divorce-- Minimum Contacts Doctrine Extended to Non-Resident in Alimony Award

Conflict of Laws--Torts--Law of Forum Applies to Accident Involving Only Out-of-State Motorists

Constitutional Law--Desegregation--States Are Required To Take Affirmative Action To Desegregate Higher Education Facilities

Constitutional Law--Selective Service Act--Fifth Amendment Requires Civil Judicial Review of Draft Board Classification and Induction Orders

Public Welfare--Substitute Father Regulation Inconsistent with Social Security Act and Invalid Criterion for Denying AFDC Payments to Needy Children

Taxation--Corporate Income Tax--Pre-Sale Declaration of Dividend by Subsidiary in Amount Equal to Retained Earnings Held Tax-Exempt Inter-Corporate Dividend on Receipt by Parent

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust--Unincorporated Divisions of a Corporation May Be Separate Entities for Purposes of Antitrust Laws

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Constitutional Law--One-Year Residence Requirement as Condition of Eligibility for State Welfare Aid Held Unconstitutional

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International Law--Sovereign Immunity and Act of State--Hickenlooper Amendment Precludes Assertion of Act of State Where Act Is Violative of International Law

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Products Liability--Lender Held Liable for Gross Defects in Housing Development It Had Financed

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Taxation--Constructive Ownership Rules Automatically Applied to Section 302(b) (1)Dividend Equivalency Test

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Taxation--IRS Rules Organization Which Discriminates on Basis of Race Not Charitable

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antitrust, constitutional law, international law, products liability, taxation

Recent Cases, Law Review Staff

Vanderbilt Law Review

Conflict of Laws--Torts--Law of Jurisdiction with Predominant Interest in Resolution of Issue Applied

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Constitutional Law--Owner of Private Subdivision May Refuse To Sell to Negroes

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Eminent Domain--Compensation for Substantial Impairment of Riparian Owners' Right of Access Denied

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Taxation--Professional Service Corporations--Kintner Regulations Held Invalid

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Taxation--Recovered Charitable Contributions, Previously Claimed as Deductions, Are Gross Income In Year of Receipt

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust--Agency Franchise Agreements Are Reasonable Trade Restraints Under Sherman Act While Restraints Following Sale Are Per Se Unlawful

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Antitrust--Product Extension Merger in Violation of Section 7 of the Clayton Act

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Constitutional Law--Reapportionment-Principle of "One Man, One Vote" Not Applicable to Appointed County School Board Performing Administrative Function

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Labor Law--Union Empowered To Expel Member for Failure To Exhaust Union Appellate Remedies

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Taxation--Federal Estate Taxation-State Trial Court Judgments on Property Rights Not Conclusive on Federal Courts Adjudicating Federal Tax Consequences

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Taxation--Federal Income Tax--Effect of Close Corporation Voting Trust on Right to Subchapter S Election

Recent Cases, Law Review Staff

Vanderbilt Law Review

Civil Rights--Exclusion of Wage Earners as a Class from Jury Service in State Courts Violates

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International Law and Trademark Infringement--Rights of Former Owners of Confiscated Cuban Businesses Under Hickenlooper Amendment

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Jurisdiction--Minimum" Contacts--First Amendment Requires a Greater Showing of Contact in a Libel Action To Satisfy Due Process Than Is Necessary in Other Types of Actions

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Labor Law--Attorney Undertaking Persuader Activity on Behalf of Employer Must Report Such Activity Under LMRDA

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Labor Law--Employer Must Bargain About an Economically Motivated Decision To Close a Portion of Its Operations

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Labor Law--Employer's Duty To Bargain When Authorization Cards Are …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust-Section 2(b) of the Robinson-Patman Act Permits Seller To Use a Pricing System To Meet the Prices of Competing Goods of Equal Saleability

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Constitutional Law--First Amendment--State Legislature May Not Require Local School Boards To Lend Textbooks to Pupils of Parochial Schools

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Constitutional Law--Imports Shipped Directly to Dealer Under Consignment Contracts With the Importer Are Not Immune to State Taxation Under the Import-Export Clause

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Constitutional Law--Reapportionment--One Man-One Vote Principle Applies to Popularly Elected Local School Boards

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Criminal Law--Admissibility in Evidence of Blood Tests Over Defendant's Objection

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Criminal Law--Resentencing--Court Has Duty To Make Known Reasons for Increased …

Income Splitting As A Means Of Avoiding Taxes, Allen T. Malone

Vanderbilt Law Review

The purpose of this note is to examine the present tax treatment of the three most popular income splitting devices used to avoid taxes: the family partnership, multiple trusts, and multiple corporations. In Part II, the various congressional and judicial limits and sanctions imposed upon these devices will be discussed along with recently proposed regulatory legislation. Part III will consist of an evaluation of the suggested limitations upon the use of income splitting devices. The ultimate concern of this note is to arrive at some conclusions as to the general approach and the specific methods best suited (1) to regulate …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust Law--Conspiracy To Eliminate Discounters From Automobile Market a Per Se Violation of Sherman Act

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Antitrust Law--Merger of Two Major Competitors in Industry with History of Concentration Violates Section 7 of Clayton Act

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Criminal Law--Future Confessions Will Be Inadmissible Unless Specified Pre-trial Procedures Are Followed

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Juvenile Courts--Juvenile Delinquent Entitled to Hearing On Question of Waiver of Jurisdiction

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Labor Law--Public Carrier Can Make Unnegotiated Unilateral Changes in Collective Agreements When "Reasonably Necessary" To Maintain Service

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Labor Law--In Future NLRB Elections, Employer Must Furnish List of Employees' Names and Addresses

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Taxation--Thin Incorporation Not Tantamount to Disqualification …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Advertising--Undisclosed Use of Simulations In Television Commercials--a Deceptive Practice

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Antitrust Law--News Service Package Contract, a Tying Arrangement under Section I of the Sherman Act

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Antitrust--Union-Employer Agreements as to Labor Demands To Be Sought From Other Employers

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Constitutional Law--Laws Prohibiting the Use of Contraceptives by Married Couples for the Prevention of Conception Are Unconstitutional

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Constitutional Law--Rights of Addressee To Receive "Communist Political Propaganda" Protected Under First Amendment

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Federal Courts--Erie Doctrine Not the Test for Applicability of Federal Rules of Civil Procedure

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Constitutional Law--Televising of Criminal Trials Held Violative of the Right to a Fair Trial …

When Will The Corporate Form Save Taxes?, Richard L. Strecker

Vanderbilt Law Review

While major emphasis will be placed upon the tax considerations involved in answering the question posed by the title, the broader problem is aptly stated in the familiar phrase, "Choice of Business Form."' It is not possible to consider this problem realistically without taking into account the context of the business and private law considerations which must enter into the decision, and may indeed be controlling over the tax factors. Therefore, the question, "When Will the Corporate Form Save Taxes?" will be discussed in the light of the full legal and business milieu.

Inconsistent Taxation Of Grantor Powers, Leslie A. Nicholson, Iii

Vanderbilt Law Review

"Certainty," Lord Hardwicke declared in 1753, "is the mother of repose and therefore the law aims at certainty."' This note will explore the extent to which the law has missed the mark of certainty in the taxation of trust grantors. The heavy burden of federal income and estate taxation has prompted many persons to divest themselves of property during their lives. The property is usually given to a relative in order to shift the income from the property into a donee's lower tax bracket and to avoid the payment of an estate tax on the property by incurring an inter …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Attorneys--Interstate Legal Services and the Unauthorized Practice of Law

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Conflict of Laws--New York Public Policy Permits Enforcement of Foreign Gambling Obligation

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Conscientious Objectors--Universal Military Training and Service Act--Supreme Court Test of"Belief In A Relation to A Supreme Being

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Constitutional Law--Abatement of Convictions Occurring Prior to Passage of Civil Rights Act of 1964

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Escheats--Disputes Between States Concerning Unclaimed Corporate Obligations

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Labor Law--Failure To Bargain--Employer Required To Bargain With Respect to His Proposal To Contract Out Work

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Professions--Canon Twenty of the Canons of Professional Ethics Interpreted To Ban Statements to News Media

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Taxation--Corporate Income Taxation--Merger …

Multiple Corporations Under The Revenue Act Of 1964, James T. O'Hare

Vanderbilt Law Review

It is a maxim of taxation that where graduated tax rates are imposed on the income of a legal entity, tax avoidance in the form of income splitting will be attempted. This has proven true in the case of individuals' and trusts, and has more recently become true of corporations. For over a decade the law governing the tax status of affiliated corporations has been developing. The Revenue Act of 1964 introduces several important changes in the federal income tax treatment of multiple corporations. The purpose of this note is to examine the tax status of multiple corporations both before …

Expanded Bases Of Jurisdiction -- An Examination Of Tennessee's New "Long-Arm" Statute, Harry G. Nichol, Jr.

Vanderbilt Law Review

A foreign corporation considering the consequences of its activity in relation to forums outside the state of its incorporation is faced with three basic legal problems. They are generally regarded as the different degrees of "doing business" for purposes of (1) qualification,(2) taxation, and (3) judicial jurisdiction. The purpose of this paper is to discuss a major recent development concerning the jurisdiction of Tennessee courts, in light of similar developments throughout the country.

Recent Cases, Law Review Staff

Vanderbilt Law Review

Constitutional Law--Fourteenth Amendment--Fifth Amendment Privilege Against Self-incrimination Applicable to States--Federal Standard Determinative

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Criminal Law--Habeas Corpus Relief Where Subsequent Decisions Reveal Prejudicial Error in Original Sentence

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Criminal Law--Probable Cause and Fourth Amendment Guarantees as Applied to State Parolees

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Criminal Law--Retroactivity of Mapp Exclusionary Rule

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Decedent's Estates--Res Judicata Effect Upon Heir Who Did Not Participate in Prior Will Contest

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Equity--Compulsory Medical Aid to Adult Who Objects on Religious Grounds

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Federal Courts--Vexatious Suit--Attorney's Fees as Element of Costs-Denial of Plaintiff's Motion to Dismiss With Prejudice

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Labor Law--Pre-emption--Applicability of Pre-emption Doctrine to Libel Action Arguably Subject to …

Recent Case Comments, Law Review Staff

Vanderbilt Law Review

Attorneys--Violation of Canon 27 by Encouraging or Permitting Favorable Publicity

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Constitutional Law--Dismissal of Criminal Charges Because of Deprivation of Right to Effective Counsel by Eavesdropping

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Criminal Law--Credit Card Invoice as a "Security" under National Stolen Property Act

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Criminal Law--Rights of Alleged Parole Violator at Revocation Hearing

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Labor Law--Federal Procedure--Right to Jury Trial under Section 17 of the Fair Labor Standards Act

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Labor Law--Representation. Elections--Provision on Ballot Allowing Vote for "No Representation"

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Labor Law--Unfair Labor Practice--Availability of Injunction Prior to Exhaustion of Administrative Remedies

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Taxation--Federal Estate Tax--Survivor's Annuity as Insurance Under Section 2039 a …

Recent And Prospective Developments In Taxation Of Partnerships, Arthur B. Willis, Stephen A. Bauman

Vanderbilt Law Review

This article will attempt to set forth the provisions of the Revenue Act of 1962 insofar as they affect the taxation of partners and partnerships, the recent developments in this area in brief detail and wide exposure, and the significant aspects of expected future legislation,including an analysis of certain parts of H.R. 9662.

Recent Cases, Law Review Staff

Vanderbilt Law Review

Administrative Law--Due Process--Expulsion From Public University Requires Notice and Hearing

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Antitrust Law--Investigatory Powers--Federal Trade Commission Has Right To Obtain Private Copies Of Privileged Census Information

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Constitutional Law--Due Process-Escheat By One State of a Fund Claimed By Other States Held To Violate Due Process

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Sales--Warranty--Advertisement That Cigarettes Are Harmless Held An Express Warranty

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Taxation--Income Tax-Deferral Of Prepaid Income Disallowed

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Taxation--Inheritance, Estate and Gift Taxes--Blockage Rule Rejected in Evaluating Stock For Ohio Succession Tax

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Taxation--Use Tax--Commerce and Equal Protection Clauses--Discrimination Against Multi-State Business

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Torts--Negligence--Vendor of Alcoholic Beverages Held Liable for Injuries to Intoxicated Vendee Despite …

The Western Hemisphere Trade Corporation, Edward C. Blank, Ii

Vanderbilt Law Review

The existing complexity involved in the taxation of corporate income derived from sources without the United States has motivated Congress to undertake an extensive review of our governmental policy pertaining to this area of taxation. The particular provisions of the Internal Revenue Code of 1954 relating to this subject are merely an ad hoc accumulation, noticeably void of any systematic design. The intended purpose of the present congressional inquiry is to determine whether or not incentive taxation is a proper method by which this nation's foreign policies can be implemented. If it be deemed advisable to offer tax benefits to …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Constitutional Law--Freedom of Speech--Prior Restraint on Motion Picture Exhibition

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Criminal Law--Murder--Year and a Day Rule Rejected in Pennsylvania

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Real Property--Restraints on Alienation--Conveyance Giving Housing Cooperative First Option to Buy and Right to Redeem is not an Invalid Restraint on Alienation

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Taxation--Income Tax--Uncompensated Casualty Loss Due to Drought Allowed as Section 165 Deduction

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Torts--Negligence--Fireman in Performance of Duties Allowed Recovery as Invitee