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Business Organizations Law

1983

Corporations -- Taxation

Articles 1 - 2 of 2

Full-Text Articles in Law

Section 356(A)(2): A Study Of Uncertainty In Corporate Taxation, William J. Rands Nov 1983

Section 356(A)(2): A Study Of Uncertainty In Corporate Taxation, William J. Rands

University of Miami Law Review

Section 356(a)(2) of the Internal Revenue. Code requires the recipient of boot in a corporate reorganization to treat any gain recognized as a dividend, if the reorganization "has the effect of the distribution of a dividend." This article examines the conflicting interpretations of this section and offers suggested changes in the law. The article also reviews the performance of all three branches of government in developing tax law.


The Service Corporation-- Who Is Taxable On Its Income: Reconciling Assignment Of Income Principles, Section 482, And Section 351, Elliott Manning Sep 1983

The Service Corporation-- Who Is Taxable On Its Income: Reconciling Assignment Of Income Principles, Section 482, And Section 351, Elliott Manning

University of Miami Law Review

In evaluating potential abuses in the creation and operation of service corporations, the courts have been unable to define the proper roles of assignment of income principles and section 482, both of which may under certain conditions require the taxation of such corporations' employee-shareholders, and section 351, which shields certain transfers of income to the corporation. The author, after an analysis of case law and rulings that deal with service and other closely held corporations, proposes a framework in which to harmonize the policies of sections 482 and 351 in light of the assignment of income doctrine.